In 2018, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2018 and 2019, she received Form 1099s reporting the following. $\begin{array}{rrrrr}
&\text { Reinvested } & \text { Shares } & \text { Price per } & \text { Total shares } \
&\text { dividends } & \text { purchased } & \text { share } & \text { owned }\
2018 & \$ 4,800 & 240 & \$ 20 & 3,240 \
2019 & \$ 3,150 & 150 & \$ 21 & 3,390
\end{array}$
If Mrs. Owens sells her 3,390 shares in 2020 for $22 per share, compute her recognized gain.

Question

In 2018, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2018 and 2019, she received Form 1099s reporting the following. $\begin{array}{rrrrr}
&\text { Reinvested } & \text { Shares } & \text { Price per } & \text { Total shares } \
&\text { dividends } & \text { purchased } & \text { share } & \text { owned }\
2018 & \$ 4,800 & 240 & \$ 20 & 3,240 \
2019 & \$ 3,150 & 150 & \$ 21 & 3,390
\end{array}$
 If Mrs. Owens sells her 3,390 shares in 2020 for $22 per share, compute her recognized gain.

Quizplus · Accepted Answer

The Answer of In 2018, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2018 and 2019, she received Form 1099s reporting the following. $\begin{array}{rrrrr}
&\text { Reinvested } & \text { Shares } & \text { Price per } & \text { Total shares } \
&\text { dividends } & \text { purchased } & \text { share } & \text { owned }\
2018 & \$ 4,800 & 240 & \$ 20 & 3,240 \
2019 & \$ 3,150 & 150 & \$ 21 & 3,390
\end{array}$
 If Mrs. Owens sells her 3,390 shares in 2020 for $22 per share, compute her recognized gain.

In 2018, Mrs If Mrs Owens Sells Her 3,390 Shares in 2020 for $22