Rachel holds 110 shares of Argon Mutual Fund. She is planning to sell 90 shares. Her record of the share purchases is noted below. What could be her basis for the 90 shares to be sold for purposes of determining gain? $$\begin{array} { | l | c | c | }
\hline & \text { Cost per Share } & \text { No. of Shares } \
\hline \text { Purchase April } 1,2015 & \$ 100 & 100 \
\hline \text { Reinvested Dividends April } 1,2016 & \$ 150 & 10 \
\hline
\end{array}$$

Question

Rachel holds 110 shares of Argon Mutual Fund. She is planning to sell 90 shares. Her record of the share purchases is noted below. What could be her basis for the 90 shares to be sold for purposes of determining gain? $$\begin{array} { | l | c | c | } 
\hline & \text { Cost per Share } & \text { No. of Shares } \
\hline \text { Purchase April } 1,2015 & \$ 100 & 100 \
\hline \text { Reinvested Dividends April } 1,2016 & \$ 150 & 10 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Rachel can choose different methods for determining the basis of the shares sold, such as specific identification, FIFO (First-In, First-Out), or average cost. Each method could result in a different basis for the 90 shares.

Rachel Holds 110 Shares of Argon Mutual Fund A) $9,000 B) $9,500 C) $9,409 D) Any of the Planning

Rachel Holds 110 Shares of Argon Mutual Fund A) $9,000
B) $9,500
C) $9,409
D) Any of the Planning