Answer:
The answer is option (a)=$50
Explanation:
Basis of the 50 shares Melonie purchased can be described as its value;
Value of shares purchased on August 3, 2017=(value per share×number of shares)
August 3, 2017 value=(6×100)=$600
Value of shares sold on December 18, 2018=(100×4)=$400
Balance of shares=0
Value balance after sale=(400-600)=-200, she went on a loss of $200
January 5, 2019 purchase 50 shares at 5 dollars each
Total value=(50×5)=250
Total value she has by January 5, 2019=250+(-200)=50
Basis of the 50 shares she has=$50
