1. In 20x4, Mr. DP paid $47,600 for 3,400 shares of GKL mutual fund and elected to reinvest dividends in additional shares. In 20x4 and 20x5, he received Form 1099s reporting the following:

a) If Mr. DP sells his 4,052 shares for $18 per share, compute his recognized gain.

b) If he sells only 800 shares for $18 per share and uses the FIFO method to determine basis, compute his recognized gain.

c) If he sells only 800 shares for $18 per share and uses the average basis method, compute his recognized gain.

	20x4	20x5
Dividend Reinvested	$5,070	$5,780
Shares Purchased From Reinvested Dividends	312	340
Price per Share	$16.25	$17.00
Total Shares Owned (After Reinvesting Dividends)	3,712	4,052