Greller owns 100 shares of arden corp., a publicly traded company, which greller purchased on january 1, year 1, for $10,000. on january 1, year 3, arden declared a 2-for-1 stock split when the fair market value (fmv) of the stock was $120 share. immediately following the split, the fmv of arden stock was $62 per share. on february 1, year 3, greller had his broker specifically sell the 100 shares of arden stock received in the split when the fmv of the stock was $65 per share. what is the basis of the 100 shares of stock arden sold?
a. $6,500
b. $6,000
c. $5,000
d. $6,200

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.