Basis in Securities (LO. 8) Lynn bought 95 shares of Filidelphia Corporation stock for $9,405 three years ago. On December 24, she sells 50 shares for $4,250. She plans to buy 110 more shares of Filidelphia stock for $7,150 on January 17. . Complete the statements below that explain the tax treatment of these transactions, including the underlying concepts that govern the results. Lynn's sale at a loss and potential repurchase of substantially identical shares within days constitutes a wash sale. A wash sale loss is disallowed in the year of sale and is deferred . The law presumes that her financial position in these shares is unchanged and that her primary purpose for the sale is to create a current year loss. The disallowance is not permanent. The amount deferred is added to the cost of the replacement shares. . If Lynn repurchases the shares in the timeline described, the basis will be as follows: If an amount is zero, enter "0". Input all the values as positive numbers. Amount realized from December 24 sale $ Less: Adjusted basis of shares sold Loss realized on the sale sd Deferred loss due to wash sale Loss recognized in the year of sale Cost of shares repurchased Add: Deferred loss Basis of repurchased shares Basis of new shares purchased on January 17 Basis of remaining shares from original purchase loss in the year of If Lynn delays her repurchase until after the -day window expires, there is no wash sale. She can recognize the $ the sale and reap the benefits from that deduction. The 110 new shares she purchases will have a basis of $