Monica owns 1,000 shares of General Motors Corporation common stock (adjusted basis of $15,000). On April 27, 2020, she sells 400 of these shares for $5,200, while on May 5, 2020, she purchases 300 shares of General Motors Corporation for $3,600.

A.What is Monica's recognized gain or loss resulting from these transactions?

B.What is Monica's basis for the stock acquired on May 5, 2020?

C.Could Monica have obtained different tax consequences in parts A. and B. above if she had sold the 400 shares on December 27, 2020, and purchased the 300 shares on January 5, 2021?

D.What advice would you give Monica about an alternative strategy

to the listed transactions?