2018 Tax Year

Mr. Seng sold 1,580 shares of publicly traded FroSox stock (tax basis $49,240) for $40,000 cash on February 13. He paid $43,000 cash to purchase 1,600 FroSox shares on March 2. Compute Mr. Sengs loss recognized on the February 13 sale and determine his tax basis in the 1,600 shares.

Select one:

a. No loss recognized; $40,000 basis

b. $9,240 loss recognized; $43,000 basis

c. No loss recognized; $52,240 basis

d. No loss recognized; $49,240 basis