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In 2017, Mr. Dale paid $35,200 for 4,400 shares of GKL Mutual Fund and elected to...

In 2017, Mr. Dale paid $35,200 for 4,400 shares of GKL Mutual Fund and elected to reinvest his year-end dividends in additional shares. In 2017 and 2018, he received Form 1099s reporting the following:

Dividends Reinvested Shares Purchased Price per Share Total Shares Owned
2017 $6,380 386 $16.528 4,786
2018 7,179 374 19.195 5,160
  1. Assume the taxable year is 2019. If Mr. Dale sells his 5,160 shares for $12 per share, compute his recognized gain.
  2. Assume the taxable year is 2019. If he sells only 1,600 shares for $12 per share and uses the FIFO method to determine basis, compute his recognized gain.
  3. Assume the taxable year is 2019. If he sells only 1,600 shares for $12 per share and uses the average basis method, compute his recognized gain.
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