Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000. Prepare a letter to Jacob and a memo for the file describing the tax consequences of the stock sale. Jacob’s address is 925 Arapahoe Street, Boulder, CO 80304.