Chana Purchased 400 Shares of Tronco Corporation Stock for $40,000 $$\begin{array} { | l | l | } \hline \text { Recognized Loss } & \text { Basis } \\\hline \$ 0 & \$ 32,000 \\\hline\end{array}$$

Chana purchased 400 shares of Tronco Corporation stock for $40,000 in 2014. On December 27, 2016, Chana sells the 400 shares for $24,000. Chana purchases 300 shares of Tronco Corporation stock on January 16, 2017 for $8,000. Chana's recognized loss on sale of the 400 shares in 2016 and her basis in her 300 new shares are

A) $$\begin{array} { | l | l | } \hline \text { Recognized Loss } & \text { Basis } \\\hline \$ 0 & \$ 32,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Recognized Loss } & \text { Basis } \\\hline \$ 4,000 & \$ 20,000 \\\hline\end{array}$$
C) $$\begin{array} {| l | l |} \hline \text { Recognized Loss } & \text { Basis } \\\hline \$ 12,000 & \$ 20,000 \\\hline\end{array}$$
D) $$\begin{array} {| l | l |} \hline \text { Recognized Loss } & \text { Basis } \\\hline\$ 16,000 & \$ 8,000 \\\hline\end{array}$$