Question - In 2012, Mrs. Owens paid $50,000 for 3,000 shares of a mutual fund and elected to automatically reinvest dividends in additional shares of the fund.
In 2013 and 2014, she received Form 1099s reporting the information shown in the table below:
|
Reinvested |
Purchased |
Share |
Owned |
| 2013 |
$4800 |
240 |
$20 |
3240 |
| 2014 |
$3150 |
150 |
$21 |
3390 |
If Mrs. Owens sells 1,000 shares in 2014 for $23 per share and uses the average basis method, compute her recognized gain on the shares sold.