In 2020, Mr. Dale paid $40,700 for 3,700 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2020 and 2021, he received Form 1099s reporting the following: 2020 2021 Dividends Reinvested $5,365 6,140 Shares Purchased Assume the taxable year is 2022. 393 385 Required A Required B Price per Total Shares Share $13.651 15.948 Required: a. If Mr. Dale sells his 4,478 shares for $15 per share, compute his recognized gain. b. If he sells only 1,250 shares for $15 per share and uses the FIFO method to determine basis, compute his recognized gain. c. If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Required C Owned Complete this question by entering your answers in the tabs below. 4,093 4,478 < Required B If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount. Recognized gain Porgerred C
In 2020, Mr. Dale paid $40,700 for 3,700 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2020 and 2021, he received Form 1099s reporting the following: 2020 2021 Dividends Reinvested $5,365 6,140 Shares Purchased Assume the taxable year is 2022. 393 385 Required A Required B Price per Total Shares Share $13.651 15.948 Required: a. If Mr. Dale sells his 4,478 shares for $15 per share, compute his recognized gain. b. If he sells only 1,250 shares for $15 per share and uses the FIFO method to determine basis, compute his recognized gain. c. If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Required C Owned Complete this question by entering your answers in the tabs below. 4,093 4,478 < Required B If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain. Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount. Recognized gain Porgerred C
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 50P
Related questions
Question
Transcribed Image Text:In 2020, Mr. Dale paid $40,700 for 3,700 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional
shares. In 2020 and 2021, he received Form 1099s reporting the following:
2020
2021
Dividends
Reinvested
$5,365
6,140
Shares
Purchased
Assume the taxable year is 2022.
393
385
Required A Required B
Price per Total Shares
Share
$13.651
15.948
Required:
a. If Mr. Dale sells his 4,478 shares for $15 per share, compute his recognized gain.
b. If he sells only 1,250 shares for $15 per share and uses the FIFO method to determine basis, compute his recognized gain.
c. If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain.
Required C
Owned
Complete this question by entering your answers in the tabs below.
4,093
4,478
< Required B
If he sells only 1,250 shares for $15 per share and uses the average basis method, compute his recognized gain.
Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.
Recognized gain
Porgerred C
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