Ara, who is a single taxpayer, purchased 1,000 shares of ABC stock two years ago for $42,000. She sold 500 shares on December 30, 2019, for $18,720. On January 7, 2020, she repurchased 300 shares for $7,000. How much loss can Ara use to reduce taxable income in 2019 related to this sale and what is her basis in the shares purchased in January 2020?

Benefit from loss?

Basis in new shares?