In $2021,$ Mr$.$ Dale paid $$26,400$ for $3,300$ shares of GKL Mutual Fund and elected to reinvest his year$-$end dividends in additional shares. In $2021$ and $2022,$ he received Form $1099$s reporting the following:

Dividends Reinvested Shares Purchased Price per Share Total Shares Owned

$2021$ $ $4,785399$ $ $11\mathrm{.}9923,699$

$20225,54941113\mathrm{.}5014,110$

Assume the taxable year is $2023.$

Required:

If Mr$.$ Dale sells his $4,110$ shares for $$12$ per share, compute his recognized gain.

If he sells only $1,100$ shares for $$12$ per share and uses the FIFO method to determine basis, compute his recognized gain.

If he sells only $1,100$ shares for $$12$ per share and uses the average basis method, compute his recognized gain.In $2021,$ Mr$.$ Dale paid $$26,400$ for $3,300$ shares of GKL Mutual Fund and elected to reinvest his year$-$end dividends in addition

shares. In $2021$ and $2022,$ he received Form $1099$s reporting the following:

Assume the taxable year is $2023.$

Required:

a$.$ If Mr$.$ Dale sells his $4,110$ shares for $$12$ per share, compute his recognized gain.

b$.$ If he sells only $1,100$ shares for $$12$ per share and uses the FIFO method to determine basis, compute his recognized gain.

c$.$ If he sells only $1,100$ shares for $$12$ per share and uses the average basis method, compute his recognized gain.