Ashley, a calendar year taxpayer, owns 400 shares of Yale Corporation stock that she purchased two years ago for $4,000. In the current year Ashley sells all 400 shares of the Yale Corporation stock for $2,400 on December 27. On January 4 of the following year, Ashley purchases 300 shares of Yale Corporation stock for $800. Ashley's recognized loss and her basis in the newly purchased 300 shares of Yale Corporation stock are:
A) Recognized Loss Basis
$0 $3,200.
B) Recognized Loss Basis
$400 $2,000.
C) Recognized Loss Basis
$1,200 $2,000.
D) Recognized Loss Basis
$1,600 $ 800.