Exercise 14-21 (Algorithmic) (LO. 3) Heather owns 700 shares of Diego Corporation common stock for which she paid $14,000. She receives a nontaxable stock dividend of 70 shares of preferred stock on her common stock. The fair market values on the date of distribution of the preferred stock dividend are $40 a share for common stock and $200 a share for preferred stock. What is Heather's basis in the common and preferred shares