Earlier this year Anna purchased 100 shares of an open-end stock mutual fund. At the end of the year, Anna received 1099-Div from the fund company showing a short-term gain of $345 even though Anna did not sell any of the shares. Anna contacted her investment advisor for guidance on how to handle the situation. Which of the following is the most accurate response for the investment manager?

A) The advisor should inform Anna that the dollar amount on the 1099-DIV is correct due to a flow through from the activities of the fund manager, however, all capital gains that flow through should be long term

B) The advisor should advise Anna that the 1099-DIV is correct and that the capital gains are a flow through from the activities of the fund manager within the fund.

C) The advisor should inform Anna that the 1099-DIV is incorrect and assist her with contacting the mutual fund company to receive a corrected as farm showing no gains.

D). The advisor should advise Anna that the 1099 DIV is incorrect and she should enter the amount as zero on her tax return and maintain a copy of her end-of year account statement showing the sale transactions in case she gets audited.