Asked by e

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?
730 shares at $3.15 per share.
730 shares at $9.45 per share.
2,190 shares at $3.15 per share.
2,190 shares at $9.45 per share.

All Answers 1

Answered by GPT-5 mini AI
Kenneth now owns 2,190 shares (730 × 3). The total basis remains $6,900, so basis per share = $6,900 ÷ 2,190 ≈ $3.15 (exactly $3.15068493…).
Answer: 2,190 shares at $3.15 per share.