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In 2017, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2017 and

In 2017, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to reinvest year-end dividends in additional shares. In 2017 and 2018, she received Form 1099s reporting the following.

Reinvested dividends Shares purchased Price per share Total shares owned
2017 $4,800 240 $20 3,240
2018 $3,150 150 $21 3,390

If Mrs. Owens sells 1,000 of her 3,390 shares in 2019 for $22 per share and uses the average basis method, compute her recognized gain.

Group of answer choices

A. $4,910

B. $5,333

C. $3,883

D. $0

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