An investor buys 100 shares in a mutual fund on January 1, 2015, for $50 each. The fund earns dividends of $2 and $3 per share during 2015 and 2016. These are reinvested in the fund. The funds realized capital gains in 2015 and 2016 are $5 per share and $3 per share, respectively. The investor sells the shares in the fund during 2017 for $59 per share. Explain how the investor is taxed.