Response to the following problem:
Jim purchased 100 shares of stock this year and elected to participate in a dividend reinvestment program. This program automatically uses dividends to purchase additional shares of stock. This year Jim's shares paid $350 of dividends and he used these funds to purchase shares of stock. These additional shares are worth $375 at year-end.
What amount of dividends, if any, should Jim declare as income this year? Explain.