Sylvia Owns 1,000 Shares of Sidney Sails, Inc $\begin{array} { r r } \text { Capital loss } & \text { Basis } \\\end{array}$

Short Answer

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:
?
$\begin{array} { r r } \text { Capital loss } & \text { Basis } \\\end{array}$
A) $\begin{array} { r r } \$ 3,000 &&& \$ 5,000 \\\end{array}$
B) $\begin{array} { r r } \$ 2,700 &&& \$ 6,800 \\\end{array}$
C) $\begin{array} { r r } \$ 4,500 & &&\$ 5,000 \\\end{array}$
D) $\begin{array} { r r } \$ 3,000 &&& \$ 6,800 \\\end{array}$
E) $\begin{array} { r r } \$ 2,700 &&& \$ 5,000\end{array}$