Question - Abner owns 1,000 shares of ABC stock, which he purchased 2 years ago at a cost of $40 per share. He sells all of the stock on November 15 of the current year at the market price of $24 per share. On December 10 of the current year, Abner notices that the market price has gone up to $32 per share, so he once again thinks ABC is a good investment and buys 1,000 shares at the market price. What is Abner's basis in the new stock and what amount of loss, if any, will he recognize on the November 15 sale?

$32,000 ($32 per share) basis and a realized long term capital loss of $16,000.

$32,000 ($32 per share) basis and no realized gain or loss.

$40,000 ($40 per share) basis and a realized long term capital loss of $16,000.

$48,000 ($48 per share ) basis and no realized gain or loss.

None of the above.