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Case Study 1: Basis and Adjusted BasisAlice paid $1,100 for 100 shares of ABC, Inc. stock (including the broker's commission of $25), so the original basis per share was $11 ($1,100/100). Alice received 10 additional shares of ABC stock as a nontaxable stock dividend. Her $1,100 basis must be spread over 110 shares (100 original shares plus the 10-share stock dividend). Can you determine the adjusted basis of Alice's stock? Click here for an explanation. If Alice's basis in the stock was $1,100 for 100 shares, then her original basis per share was $11 ($1,100/100). So, the 10 additional shares mean that Alice's basis per share decreased to $10 per share ($1,100/110). 
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Income — Capital Gain or Loss Workout
Basis of Stock
Publication 4491 Capital Gain or Loss Income