Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $6,500 on January 15, 2016. On December 31, 2018 she sold all 1,000 shares of her Ibis stock for $5,250. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2019 for $3,375. What is Ms. Fresh's recognized loss on her 2018 sale and what is her basis in her 1,000 shares purchased in 2019?

Multiple Choice

• $500 LTCL and $4,125 basis.
• $750 LTCL and $3,875 basis.
• $1,000 LTCL and $3,625 basis.
• $-0- LTCL and $4,625 basis.
• $1,250 LTCL and $3,375 basis.