Miller, an individual calendar-year taxpayer, purchased 100 shares of Maples Inc. common stock for $10,000 on July 10, 2009, and an additional fifty shares of Maples Inc. common stock for $4,000 on December 24, 2009. On January 8, 2010, Miller sold the 100 shares purchased on July 10, 2009, for $7,000. What is the amount of Miller's recognized loss for 2010 and what is the basis for her remaining fifty shares of Maples Inc. stock?
a) $3,000 recognized loss; $4,000 basis for her remaining stock.
b) $1,500 recognized loss; $5,500 basis for her remaining stock.
c) $1,500 recognized loss; $4,000 basis for her remaining stock.
d) $0 recognized loss; $7,000 basis for her remaining stock.
Answer: b) $1,500 recognized loss; $5,500 basis for her remaining stock.