Refer to the facts in the preceding problem. In each case in which SW purchased 1,200 Delta shares, compute its tax basis in the shares.
a. SW’s cost basis in the 1,000 shares was $104 per share. It did not purchase any other Delta shares during this year.
b. SW’s cost basis in the 1,000 shares was $104 per share. It purchased 1,200 shares of Delta on May 1 for $92 per share.
c. SW’s cost basis in the 1,000 shares was $104 per share. It purchased 1,200 shares of Delta on June 8 for $92 per share.
d. SW’s cost basis in the 1,000 shares was $79 per share. It purchased 1,200 shares of Delta on June 8 for $92 per share.