Jill has invested in her growth mutual fund regularly over the last several years.Prices have generally increased, and a

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Jill has invested in her growth mutual fund regularly over the last several years.Prices have generally increased, and a

Post by answerhappygod »

Jill has invested in her growth mutual fund regularly over thelast several years.Prices have generally increased, and alldistributions have automatically been reinvested. About 15 monthsago, Jill stopped investing since she had surpassed her goal. Jillnow wants to convert a portion of her investment to cash and paythe least taxes. What is the cost method that will minimize hergain?
Question 5 options:
A. First in, last out (FILO) method
B. because these are mutual fund shares, the mutual fund paystaxes instead of the individual investor
C. Last in, first out (LIFO) method
D. the methods in A, B, and C will provide the same costbasis
E. average cost method
Please help. At first I chose D as the answer, but that cameback wrong
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply