Problem - Harold owned the following lots of Orange Corporation stock.
Purchase date No. of shares Basis
October 1, 2005 50 $ 2,500
February 8, 2006 50 3,500
September 5, 2006 100 11,000
On October 12, 2008, 100 shares of stock were sold for $14,000. Harold did not specifically identify the shares of stock sold. What is the recognized gain or loss?
a. $0.
b. $3,000.
c. $5,500.
d. $8,000.
e. None of the above.