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No. of Recommendations: 1
Scenario 1

1. Bought 100 shares of ABC Company @ $10/share for total of $1,000
2. ABC's 100 shares pay a dividend of $30, reinvested at @ $15/share
3. Bought 50 shares of ABC Company @ $20/share for a total of $1,000
4. Sold all 152 shares of ABC Company at $30/share for $4,560.

Is my cost basis $2,000 or do I need to account for the dividend reinvestment as well?


You could have spent those dividends on anything you wanted. You chose to invest that capital in ABC Company stock, so it increases your basis.

Vickifool -- cherry-picking the easy question.
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