Ms Ellis Sold 889 Shares of Publicly Traded Omer Stock

Multiple Choice

Ms. Ellis sold 889 shares of publicly traded Omer stock (tax basis $161,400) for $125,000 cash on July 2. She paid $136,200 cash to purchase 900 Omer shares on August 8. Compute Ms. Ellis' loss recognized on the July 2 sale and determine her tax basis in the 1,000 shares.

A) $36,400 loss recognized; $136,200 basis
B) No loss recognized; $136,200 basis
C) No loss recognized; $76,200 basis
D) $36,400 loss recognized; $125,000 basis