Ms. Ellis sold 889 shares of publicly traded Omer stock (tax basis $161,400) for $125,000 cash on July 2. She paid $136,200 cash to purchase 900 Omer shares on August 8. Compute Ms. Ellis' loss recognized on the July 2 sale and determine her tax basis in the 1,000 shares.
A. $36,400 loss recognized; $125,000 basis
B. No loss recognized; $136,200 basis
C. No loss recognized; $76,200 basis
D. $36,400 loss recognized; $136,200 basis
Answer: D
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