Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Xavier owns shares of a mutual fund. During the year, he received $2,750 in dividend distributions, $800 of which he received in cash. He elected to use the remaining $1,950 to purchase additional shares of the fund. The amount subject to tax is:

Sagot :

anthougo

The amount of dividend received by Xavier subject to tax is A. $0.

Data:

Dividends received = $2,750

Cash dividend = $800

Stock dividend (additional) = $1,950 ($2,750 - $800)

The law does not subject the reinvested dividends to taxation, especially when the greater portion of the dividends is reinvested in stock.

Answer Options:

A. $0

B. $800

C. $1,950

D. $2,750

Thus, the amount of dividend received by Xavier subject to tax is A. $0.

Learn more: https://brainly.com/question/4340765

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.