Candice Owns a Mutual Fund That Reinvests Her Dividends and Capital

question 52

Multiple Choice

Candice owns a mutual fund that reinvests her dividends and capital gains earned during the year.The mutual fund reported to her that her share of earnings was: $500 in dividends,$1,500 in short-term net capital gains,and $1,300 in long-term net capital gains.She reported the items on her tax return and paid the appropriate tax on these earnings.If her basis in the fund was $25,000 at the beginning of the year,what is her basis at the end of the year?

• A)$25,000
• B)$25,500
• C)$27,000
• D)$28,300

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Definitions:

Saturated

Often refers to organic molecules, specifically fats, that have no double or triple bond interactions between carbon atoms, making them solid at room temperature.

3-D Shape

An object or figure that has depth, width, and height, giving it a form that can be measured in three dimensions.

Specific

Clearly defined or identified; precise or particular.

Free Energy

The portion of a system's energy that can perform work when temperature and pressure are uniform throughout the system.