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In 2012, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to automatically reinvest dividends in additional shares of the fund.
In 2012, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to automatically reinvest dividends in additional shares of the fund.
In 2013 and 2014, she received Form 1099s reporting theinformation shownin the table below:
Reinvested | Purchased | Share | Owned | |
2013 | $4800 | 240 | $20 | 3240 |
2014 | $3150 | 150 | $21 | 3390 |
If Mrs. Owens sells 1,000 shares in 2014 for $23 per share and uses the average basis method, compute her recognized gain on the shares sold.
$4,910 | |
$5,333 | |
$5,910 | |
$6,333 |
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