Question
In 2014, Mr. Dale paid $25,200 for 4,200 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2014
In 2014, Mr. Dale paid $25,200 for 4,200 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2014 and 2015, he received Form 1099s reporting the following
| Dividends Reinvested | Shares Purchased | Price per Share | Total Shares Owned | |
| 2014 | $6,090 | 328 | $18.567 | 4,528 |
| 2015 | 6,792 | 415 | 16.366 | 4,943 |
a. Assume the taxable year is 2016, if Mr. Dale sells his 4,943 shares for $10 per share, compute his recognized gain. recognized gain: b. Assume the taxable year is 2016, if he sells only 1,500 shares for $10 per share and uses the FIFO method to determine basis, compute his recognized gain. recognized gain: c. Assume the taxable year is 2016, if he sells only 1,500 shares for $10 per share and uses the average basis method, compute his recognized gain.
recognized gain:
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
14th Edition
133081605, 132575957, 9780133081602, 978-0132575959
