Mort owns 500 shares of Pear, Inc. stock with an adjusted basis of $22,000. On July 28, 2020, he sells 100 shares for $3,000. On August 16, 2020, he purchases another 100 shares for $3,400. Select the best answer below based on the fact pattern

	A.	Mort has a tax loss of $1,400 and his basis on shares purchased on August 16 is $3,000
	B.	Mort's adjusted basis for the 100 shares purchased on August 16 is $4,800 and he has a tax loss of $1,400 related to the sale.
	C.	Mort's adjusted basis for the 100 shares purchased on August 16 is $3,400 and he has a tax loss of $1,400 related to the sale.
	D.	Mort's adjusted basis for the 100 shares purchased on August 16 is $4,800 and he is not able to recognize any loss for tax purposes
	E.	Mort's adjusted basis for the 100 shares purchased on August 16 is $4,800 and he has a tax gain of $1,400 related to the sale.