(Answered) Kevin purchases 5000 shares of purple corporation common

Accounting

Kevin purchases 5,000 shares of Purple Corporation common stock at $10 per share. Two years later, he receives a 5% proportionate common stock dividend. At the time, the common stock of Purple Corporation had a fair market value of $12.50 per share. What is Kevin's basis per share in the common stock Kevin received as a stock dividend and what is his recognized gain upon receipt of the common stock dividend?

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