In 2014, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2014 and 2015, she received Form 1099s reporting the following. If Mrs. Owens sells 1,000 shares in 2016 for $22 per share and uses the average basis method, compute her recognized gain.
A) $4,910
B) $5,333
C) $3,883
D) $0
Correct Answer:
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