Irene purchased a $1,000 par 5.8% convertible bond 10 years ago for $1,050. Three years ago, Irene exercised the conversion option and traded the bond for 25 shares of preferred stock. At the time of the conversion, the preferred stock had a market value of $50 per share. The price of the preferred stock has risen to $55 per share, and Irene is considering selling the stock. What is the cost basis for the disposal of the preferred stock shares? $1,150$1,050$1.375$1,250$1,000