Question

_{Ivy Jackson invested $2,000 on April 1, 2015, in Growth Mutual Fund sold by a major financial institution. Her investment purchased 72.788 units of the fund. On December 31, 2015, the fund allocated $96.37 of capital gains to her account. As a result, the $96.37 was reinvested in the fund to purchase 3.774 units at the market value of $25.535 per unit. On June 30, 2016, she sold 25 of her units for a total of $718. Ivy has asked you to calculate the effects of these events on her income for tax purposes in 2015 and 2016.}

Answer 1

2015
capital gains	96.37
2016
investment amt	2000
units	72.788
cost/unit	investment/units
	2000/72.788
	27.47705666
reinvestment	96.37
cost/unit	25.535
units	3.774
total cost	2000+96.37=	2096.37
total units	72.788+3.774=	76.562
avg price	2096.37/76.562=	27.38134
unit sold	25
amt	718
sale price/unit	718/25
	28.72
purchase cost	27.3813
total pur cost	25*27.3813=	684.5335
profit	718-684.53
	33.46654999
capital gain of 2016	33.467