Greller owns 100 shares of arden corp., a publicly traded company, which greller purchased on january 1, year 1, for $10,000. on january 1, year 3, arden declared a 2-for-1 stock split when the fair market value (fmv) of the stock was $120 share. immediately following the split, the fmv of arden stock was $62 per share. on february 1, year 3, greller had his broker specifically sell the 100 shares of arden stock received in the split when the fmv of the stock was $65 per share. what is the basis of the 100 shares of stock arden sold?
a. $6,500
b. $6,000
c. $5,000
d. $6,200

The answer is: $5,000

Explanation:

Greller first bought 100 stocks at $100 each ($10,000 in total).

Then the stock split in two, so Greller now had 200 stocks with a basis of $50 each.

If then Greller sold 100 stocks, the total basis for the sell is $5,000.

Any amount above $5,000 will be considered as capital gains by the IRS. So Greller should report the $1,500 he earned.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

$2.00 for three shots.