In 2012, Jane Jones pays $2,500 for 1,000 shares of ABC common stock. On August 27, 2016, Jane purchases an additional 250 shares of ABC common stock for $600. On September 5, 2016, she sells the 1,000 shares purchased in 2012 for $1,800. Jane's basis in the shares of stock purchased on August 27, 2016 is: 1) $75. 2) $425. 3) $600. 4) $775. 5) $1,125