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?

Question

Quizplus · Accepted Answer

D) Owners of mutual fund shares have a choice of FIFO ($9,000), specific identification ($9,500, assuming $150 shares chosen first with balance coming from $100 shares) or average cost ($9,409).

Rachel Holds 110 Shares of Argon Mutual Fund