Explain how the investor is taxed

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Question - An investor buys 100 shares in a mutual fund on January 1, 2018, for $50 each. The fund earns dividends of $2 and $3 per share during 2018 and 2019. These are reinvested in the fund. The fund's realized capital gains in 2018 and 2019 are $5 per share and $3 per share, respectively. The investor sells the share in the fund during 2020 for $59 per share. Explain how the investor is taxed.

Reference no: EM133059610

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