The Three Methods of Taxing Mutual Fund Gains Are

question 4

Multiple Choice

The three methods of taxing mutual fund gains are:

• A) Average Cost Method, FIFO Method, and LIFO Method
• B) FIFO Method, LIFO Method, and Specific Identification Method
• C) Average Cost Method, Minimum Balance Method, and Specific Identification Method
• D) FIFO Method, Average Cost Method, and Specific Identification Method
• E) FIFO Method, Average Cost Method, and Valuation Method

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Definitions:

Primary Beneficiary

The main individual or entity designated to receive the benefits or payouts from an insurance policy, trust, or other financial instrument.

Consolidated

Referring to the financial statements that combine the financial information of a parent company with its subsidiaries to present as a single entity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for global use.

AFS-Debt Securities

Available-For-Sale Debt Securities are debt investments not classified as held-to-maturity or trading securities and can be sold before maturity.