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Ted owns 1,000 shares of common stock in Black Creek Corporation. In the current year,...

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Accounting

Ted owns 1,000 shares of common stock in Black Creek Corporation. In the current year, Ted received a 20% nontaxable stock dividend of additional shares of common stock. His basis in the original 1,000 shares was $24,000, and the Black Creek stock had a FMV of $15 per share on the date of distribution. What is Ted's basis in the stock dividend from Black Creek? A. $0 B. $3,000 C. $4,000 D. $4,800

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