Stock splits Nathan Detroit owns 400 shares of the food company General Mills, Inc., which he purchased during the recession in January 2009 for $35 per share. General Mills is regarded as a relatively safe company because it provides a basic product that consumers need in good and bad economic times. Nathan read in the Wall Street Journal that the company’s board of directors had voted to split the stock 2-for-1. In June 2010, just before the stock split, General Mills shares were trading for$75.14.

Answer the following questions about the impact of the stock split on his holdings and taxes. Nathan is in the 28% federal income tax bracket.

e. What is Nathan’s tax liability from the event?


Answered 10 months ago
Answered 10 months ago
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In this final part of this task, we ought to determine Nathan's tax liabilities, knowing his federal income tax bracket.

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