In 2017,Mrs.Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares.In 2017 and 2018,she received Form 1099s reporting the following. If Mrs.Owens sells 1,000 of her 3,390 shares in 2019 for $22 per share and uses the average basis method,compute her recognized gain.

Question

In 2017,Mrs.Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares.In 2017 and 2018,she received Form 1099s reporting the following.  If Mrs.Owens sells 1,000 of her 3,390 shares in 2019 for $22 per share and uses the average basis method,compute her recognized gain.

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The Answer of In 2017,Mrs.Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares.In 2017 and 2018,she received Form 1099s reporting the following.  If Mrs.Owens sells 1,000 of her 3,390 shares in 2019 for $22 per share and uses the average basis method,compute her recognized gain.