Gertrude invested $50,000 in the Can't Miss Technology Fund at a time when the net asset value per share (NAVPS) was $16.45. The fund has a 2.25% front-end load. On December 24th, the fund paid a capital gains distribution of $0.75 per share which Gertrude elected to reinvest in the Can't Miss Fund. Just prior to the distribution the NAVPS of the fund was $19.40. What amount must Gertrude report as part of her total income on her income tax return as a result of the distribution?

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To calculate the amount of capital gains distribution that Gertrude must report as part of her total ... View the full answer