Three years ago, Adrian purchased 365 shares of stock in X Corp. for $68,620. On December 30 of year 4, Adrian sells the 365 shares for $61,320.
A. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?
B. Assume the same facts as in part (A), except that on January 20 of year 5, Adrian purchases 365 shares of X Corp. stock for $61,320. How much loss from the sale on December 30 of year 4 is deductible on Adrian's year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?