Sylvia owns 1,000 shares of Sidney Sails,Inc.,for which she paid $18,000 several years ago.On March 15,she purchases 400 additional shares for $5,000.Sylvia sells the original 1,000 shares for $13,500 on April 1.These are her only stock transactions during the year.Sylvia's capital loss deduction for the current year and her basis in the new shares are:
$\begin{array}{ll}
\text {Capital loss } & \text { Basis } \
a.\$ 3,000 & \$ 5,000 \
b.\$ 2,700 & \$ 6,800 \
c.\$ 4,500 & \$ 5,000 \
d.\$ 3,000 & \$ 6,800 \
e.\$ 2,700 & \$ 5,000
\end{array}$

Question

Sylvia owns 1,000 shares of Sidney Sails,Inc.,for which she paid $18,000 several years ago.On March 15,she purchases 400 additional shares for $5,000.Sylvia sells the original 1,000 shares for $13,500 on April 1.These are her only stock transactions during the year.Sylvia's capital loss deduction for the current year and her basis in the new shares are:
$\begin{array}{ll}
\text {Capital  loss } & \text { Basis } \
a.\$ 3,000 & \$ 5,000 \
b.\$ 2,700 & \$ 6,800 \
c.\$ 4,500 & \$ 5,000 \
d.\$ 3,000 & \$ 6,800 \
e.\$ 2,700 & \$ 5,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Sylvia owns 1,000 shares of Sidney Sails,Inc.,for which she paid $18,000 several years ago.On March 15,she purchases 400 additional shares for $5,000.Sylvia sells the original 1,000 shares for $13,500 on April 1.These are her only stock transactions during the year.Sylvia's capital loss deduction for the current year and her basis in the new shares are:
$\begin{array}{ll}
\text {Capital  loss } & \text { Basis } \
a.\$ 3,000 & \$ 5,000 \
b.\$ 2,700 & \$ 6,800 \
c.\$ 4,500 & \$ 5,000 \
d.\$ 3,000 & \$ 6,800 \
e.\$ 2,700 & \$ 5,000
\end{array}$

Sylvia Owns 1,000 Shares of Sidney Sails,Inc