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.
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.
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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?