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Julian invests in GHI mutual fund. Any dividend income from the fund is reinvested to purchase additional shares of the fund. What is the tax
Julian invests in GHI mutual fund. Any dividend income from the fund is reinvested to purchase additional shares of the fund. What is the tax treatment of the reinvested dividends? A) Taxes on the dividends are not due until the shares are actually sold. O B) Taxes on the dividends are deferred until dividend income exceeds the investor's cost basis in the fund. C) The dividends are received tax free because they were not paid in cash. D) The dividends are taxed as income in the year they would have been received had they not been reinvested
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