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 (Points : 3)

Recognized Loss	Basis
$0	$3,200.

Recognized Loss	Basis
$400	$2,000.

Recognized Loss	Basis
$1,200	$2,000.

Recognized Loss	Basis
$1,600	$ 800.