Basis to shareholder is FMV on date of distribution. The corporation making the distribution of property has to pay tax on any gain if FMV exceeds basis. If FMV is less than basis, loss is not recognized. If the distribution is on the same class of stock, it simply increases the number of share of stock outstanding. No change takes place in total stockholders' equity.
Some common shareholders receive common stock, while others receive preferred.
Multiple basis would not lead to a uniform basis per share unless averaging method was elected. Always elect specific identity method unless poor records and information lacking. Same holding period as originals stock. FMV - No change in old basis 2. For each share of common stock you own, you will receive 2 shares of common voting.