[ANSWERED] Stock Rights. Martha Lou owns 100 shares of Blain Corporation common stock. She purchased the stock.

Stock Rights. Martha Lou owns 100 shares of Blain
Corporation common stock. She purchased the stock on July 25, 1998, for $4,000.
On May 2 of the current year, she receives a nontaxable distribution of 100
stock rights. Each stock right has a $10 FMV, and the FMV of the Blain common
stock is $70 per share. With each stock right, Martha Lou may acquire one share
of Blain common for $68 per share. Assuming chat she elects co allocate basis
co the stock rights, answer the following:
a. What is the basis allocated co the stock rights?
b. If she sells the stock rights on June 10 for $1,080,
determine the amount and character of the recognized gain?
c. If she exercises the stock rights on May 14, what is the
basis of the 100 shares purchased and when does the holding period stare?
d. If she does nor elect co allocate basis co the stock
rights, determine the amount and character of the gain if she sells the stock
rights on June 10 for $1,080?