Sylvia owns 1,000 shares of Sidney Sails, Inc., for which she paid $18,000 several years ago. On March 15, she purchases 400 additional shares for $5,000. Sylvia sells the original 1,000 shares for $13,500 on April 1. These are her only stock transactions during the year. Sylvia's capital loss deduction for the current year and her basis in the new shares are:

Capital loss Basis

	a.	$3,000 $5,000
	b.	$2,700 $6,800
	c.	$4,500 $5,000
	d.	$3,000 $6,800
	e.	$2,700 $5,000

Test bank 2016 says the answer is (b) Please explain. Thank you!