Mutual Fund Redistribution

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I am having difficulty figuring out how to treat a mutual fund
redistribution. I have used the example given for DRIPS in the gnucash user
guide, but this leads to errors in the Advanced Portfolio Basis calculation. 
example
I receive a distribution/interest reinvestment of 175.00 from my Fund. I
enter the transaction in keeping with the user guide DRIP example and now in
advanced portfolio I have 175.00 added to income and to basis. Is this
correct behaviour?





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