Answer:
her basis in her 1,000 shares purchased in 2019 = $4,775
Explanation:
Data provided in the question:
Number of shares bought = 1,000
Value of Ibis Corporation stock = $6,700
Selling value of Ibis Corporation stock on December 31, 2018 = $5,350
Buying price of shares on January 23, 2019 = $3,425
Now,
Since shares are bought back within 30 days from the previously purchase shares sold ,
therefore,
the loss will not be considered
But this will increase the Adjusted basis for new shares purchase
Thus,
Realized loss = Sales value - Purchase value
= $5,350 - $6,700
= - $1350
Here,
the negative sign depicts the loss
LTCL = $0
Adjusted basis for new 1000 shares
= Buying price of shares on January 23, 2019 + Realized loss
= $3,425 + $1,350
= $4,775
