Karen Purchased 100 Shares of Gold Corporation Stock for $11,500

question 21

Multiple Choice

Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 1,2002.In the current tax year,she sells 25 shares of the 100 shares purchased on January 1,2002,for $2,500.Twenty-five days earlier,she had purchased 30 shares for $3,000.What is Karen's recognized gain or loss on the sale of the stock,and what is her basis in the 30 shares purchased 25 days earlier?

• A)$375 recognized loss,$3,000 basis in new stock.
• B)$0 recognized loss,$3,000 basis in new stock.
• C)$0 recognized loss,$3,375 basis in new stock.
• D)$0 recognized loss,$3,450 basis in new stock.
• E)None of the above.

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