What basis should Jane use to compute her gain or loss after selling 133 shares of Alpine stock?

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To determine the correct basis Jane should use to compute her gain or loss after selling 133 shares of Alpine stock, it's essential to consider her cost basis in the shares. The cost basis typically includes the purchase price of the shares along with any additional costs that were incurred during the acquisition, such as broker fees.

It appears that the answer reflects the total amount invested in those shares. If the basis of $3,643 is correct, it suggests that this amount was calculated by adding the purchase price of the shares plus any transaction costs. Therefore, when Jane calculates her gain or loss upon selling the shares, she will subtract this cost basis from the selling price of the shares. If the selling price exceeds this basis, Jane will have a capital gain; if it is less, she will incur a capital loss.

The other options likely represent incorrect calculations of basis, possibly due to miscalculating costs, overlooking transaction fees, or incorrect purchase price amounts. Having the right basis is crucial for accurate reporting on her tax returns and ensuring compliance with tax responsibilities.

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