Ms Fresh Bought 1,000 Shares of Ibis Corporation Stock for $5,500

Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,500 on January 15, 2018. On December 31, 2020, she sold all 1,000 shares of her Ibis stock for $4,750. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2021, for $3,125. What is Ms. Fresh's recognized loss on her 2020 sale, and what is her basis in her 1,000 shares purchased in 2021?

A) $0 LTCL and $3,875 basis.
B) $300 LTCL and $3,575 basis.
C) $450 LTCL and $3,425 basis.
D) $600 LTCL and $3,275 basis.
E) $750 LTCL and $3,125 basis.