Kenneth owns 730 shares of stock with a total basis of $6,900. The stock undergoes a 3-for-1 split. How many s

Question

Kenneth owns 730 shares of stock with a total basis of $6,900. The stock undergoes a 3-for-1 split. How many shares does Kenneth own now, and what is the new basis per share?

GPT-5 mini · Answer

A 3-for-1 split triples the shares: 730 × 3 = 2,190 shares. Total basis stays $6,900, so basis per share = $6,900 ÷ 2,190 = $3.15068493 (≈ $3.15 per share).

Kenneth owns 730 shares of stock with a total basis of $6,900. The stock undergoes a 3-for-1 split. How many shares does Kenneth own now, and what is the new basis per share?

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