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In 2019, Mr. Dale paid $43,500 for 2,900 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In
In 2019, Mr. Dale paid $43,500 for 2,900 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2019 and 2020, he received Form 1099s reporting the following: Shares Purchased Dividends Reinvested 2019 2020 $4,205 351 4,877 383 Price per Total Shares Share $11.980 12.734 Owned 3,251 3,634 Assume the taxable year is 2021. Required: a. If Mr. Dale sells his 3,634 shares for $19 per share, compute his recognized gain. b. If he sells only 900 shares for $19 per share and uses the FIFO method to determine basis, compute his recognized gain. c. If he sells only 900 shares for $19 per share and uses the average basis method, compute his recognized gain.
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