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hello friends

simulation of 1040 form

The couple received a stock dividend from the Ace Corporation. The couple had the option to receive cash or the stock. They chose the stock, which had a fair market value of $900 on the date of distribution. The par value of the stock was $500.in

In my answer = I did not included 900 stock dividend in 1040 because stock dividend are not taxable .

I am not understanding just because couple decided to chose stock dividend out of options of cash or stock dividend . their choice made stock dividend taxable .

please help

But answer shows Line 21: The $900 is the stock dividend amount

explanation = couple had a choice of receiving as cash or a stock dividend, making the dividend taxable.