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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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