In 2016, Mr. Dale paid $47,600 for 3,400 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2016 and 2017, he received Form 1099s reporting the following:

a. Assume the taxable year is 2018. If Mr. Dale sells his 4,052 shares for $18 per share, compute his recognized gain.

b. Assume the taxable year is 2018. If he sells only 800 shares for $18 per share and uses the FIFO method to determine basis, compute his recognized gain.

c. Assume the taxable year is 2018. If he sells only 800 shares for $18 per share and uses the average basis method, compute his recognized gain.

Total Price per Shares Dividends Shares Share Reinvested Purchased 2016 2017 $4,920 5,873 312 340 Owned 15.769 3,712 17.274 4,052