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Ben, an avid day trader, buys and sells stock based on hot tips. He recently purchased Game Stop based on buzz from various websites. His
Ben, an avid day trader, buys and sells stock based on hot tips. He recently purchased Game Stop based on buzz from various websites. His transactions are as follows: - On Februry 1, he purchased 100 shares of the stock for $150/ share, the stock was overvalued but the stock price continued to climb. - On March 1, he sold the 100 shares for $100/ share. He was so disappointed he thought the stock was a sure thing! - On March 20, he repurchased 85 shares for $110/ per share. The stock price started climbing again and he wanted a piece of the action. What is the adjusted cost basis of the stock purchased on March 20 ? A. $9,350 B. $12,800 C. $13,600 D. $14,350 E. None of the above
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