Nancy wanted to take advantage of the increasing trends in ecommerce, so she invested in E-Clothes Unlimited. Following are the stock transactions she made in Year 1: January 14: Purchased 235 shares for $9400 July 19:Purchased 110 additional shares for $4950 August 1: Sold the original 235 shares for $8225 For the stock purchased on July 19, what is Nancy's basis in the shares and when does the holding period begin?

A)$4950 basis; August 1, Year 1 B)$5500 basis; January 14, Year 1 C)$5500 basis; August 1, Year 1 D)$4950 basis; January 14, Year 1