A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subscribe to common stock on June 30 of the current year. Each right entitles the holder to purchase one share of stock for $80. One right is issued for every share of stock owned Thomas owns 100 shares of stock purchased ten years ago for $4,000. At the time of the distribution of the rights, the market value of the common stock is $120 per share, and the market value of the rights is $16 per right. Thomas receives 100 rights. On September 30, he exercises 75 of the rights and sells the remaining 25 rights for $19 per right. If required, round your answers to two decimal places. a. If Thomas does not allocate his original stock basis to the rights, his basis of the new stock is b. The holding period of the new stock begins on the date the new stock was purchased c. The sale of the rights produces long-termcapital gain of 3,000 X 550 X ▼ Check My Work The rules for determining taxability of stock rights are identical to those for determining taxability of stock dividends.