In 2013, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest dividends in additional shares. In 2013 and 2014, she received Form 1099s reporting the following. If Mrs. Owens sells 1,000 shares in 2015 for $22 per share and uses the average basis method, compute her recognized gain.

Question

In 2013, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest dividends in additional shares. In 2013 and 2014, she received Form 1099s reporting the following.  If Mrs. Owens sells 1,000 shares in 2015 for $22 per share and uses the average basis method, compute her recognized gain.

Quizplus · Accepted Answer

The Answer of In 2013, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest dividends in additional shares. In 2013 and 2014, she received Form 1099s reporting the following.  If Mrs. Owens sells 1,000 shares in 2015 for $22 per share and uses the average basis method, compute her recognized gain.