An investor buys 100 shares in a mutual fund on January 1, 2018, for $50 each. The  fund earns dividends of $2 and $3 per share during 2018 and 2019. These are reinvested in the fund. The fund’s realized capital gains in 2018 and 2019 are $5 per share and $3 per share, respectively. The investor sells the shares in the fund during 2020 for $59 per share. Explain how the investor is taxed.