Jon Masters received income dividends of $850 and capital gain distributions of $540. The account was invested such that he will use the money to buy a new car in the future. Based on this information, Select one: O a. Both amounts must be included as taxable income O b. Only the dividends are taxable O c. Only the capital gains are taxable O d. Both amounts are tax exempt Oe. It is impossible to determine the tax consequences for dividend income and capital gain distributions unless the shares of the mutual fund are sold to another investor

Jon Masters received income dividends of $850 and capital gain distributions of $540. The account was invested such that he will use the money to buy a new car in the future. Based on this information, Select one: a. Both amounts must be included as taxable income b. Only the dividends are taxable c. Only the capital gains are taxable d. Both amounts are tax exempt e. It is impossible to determine the tax consequences for dividend income and capital gain distributions unless the shares of the mutual fund are sold to another investor