In 2008, Jane Jones Pays $2,500 for 1,000 Shares of ABC

Multiple Choice

In 2008, Jane Jones pays $2,500 for 1,000 shares of ABC common stock. On August 27, 2012, Jane purchases an additional 250 shares of ABC common stock for $600. On September 5, 2012, she sells the 1,000 shares purchased in 2008 for $1,800. Jane's basis in the shares of stock purchased on August 27, 2012 is:

A) $75.
B) $425.
C) $600.
D) $775.
E) $1,125.