Julia owns 1,000 shares of Orange Corporation. This year, Orange declared a 10% stock dividend. There was no option for shareholders to receive cash. When Julia received 100 shares of Orange stock, it had a fair market value of $50 a share. How much income does Julia have from the dividend?
A) $0
B) $50
C) $5,000
D) $50,000
A) $0
Stock dividends are not taxable if there is no option to receive cash.
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A) Who/she B) Who/her C) Whom/her D) Whom/she