Respuesta :

Sylvia's holdings in Maxima Growth add to her taxable income for the year assuming she decides not to sell the fund this year is $50.

What is income dividend?

Dividend income is a sort of revenue received by shareholders of certain companies. Dividend income is generated by company's profits and distributed on a per-share basis.

Some key features regarding income dividend are-

  • Dividend cash is normally available for use or reinvestment by shareholders.
  • Dividend income, in reality, reflects the actual interest on money invested in stocks.
  • Dividend income is particularly essential when compared to other types of investment, including such bonds (for latter are generally more reliable as compared to dividends).
  • Also it serves as an extra indicator of a company's appeal to investors.
  • Interest and dividend income were two stock market strategies for wealth development; assets either increase in value via capital gains or firms distribute a portion of their earnings to shareholders in the shape of dividends.

To know more about the income dividend, here

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The complete question is-

Sylvia owns 100 shares of Maxima Growth mutual fund.

In December she received a check for $50, payment of ordinary income dividend distributions and capital gains distributions.

Sylvia also noticed in her daily newspaper listings that Maxima Growth is now worth $2 per share more than what she purchased it for at the beginning of the year.

How much will Sylvia's holdings in Maxima Growth add to her taxable income for the year assuming she decides not to sell the fund this year?

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