Joy purchased 200 shares of HiLo Mutual Fund on July 15, 2007, for $10,500 and has been reinvesting dividends. On December 15, 2011, she sells 100 shares.
|
Amount |
# of shares |
| Purchase July 15, 2007 |
$10,500 |
200 |
| Reinvested dividends, Oct. 1, 2008 |
800 |
10 |
| Reinvested dividends, Oct. 1, 2009 |
970 |
20 |
| Reinvested dividends, Oct. 1, 2010 |
980 |
20 |
| TOTAL |
$13,250 |
250 |
1. What is the basis for the shares assuming FIFO?
2. What is the basis for the shares, assuming the average cost method?