Karen Purchased 100 Shares of Gold Corporation Stock for $11,500

Multiple Choice

Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 1, 2004. In the current tax year, she sells 25 shares of the 100 shares purchased on January 1, 2004, for $2,500.Twenty-five days earlier, she had purchased 30 shares for $3,000.What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier?

A) $375 recognized loss, $3,000 basis in new stock.
B) $0 recognized loss, $3,000 basis in new stock.
C) $0 recognized loss, $3,375 basis in new stock.
D) $0 recognized loss, $3,450 basis in new stock.
E) None of the above.