Ray Blechogh owns 1200 shares of RZR corp that he has held for 6 months. RZR does not pay dividends or have capital distributions. He sells 600 shares after holding the shares for 6 months and wants to hold the remaining shares for another 2 years. Excluding commissions, what is his cost basis for his remaining 600 shares?

Average of original purchase price per share and sold shares price

The original price that he paid per share for all 1200 shares

50% of the original purchase price per share + 50% of the sale price per share

The sales price of the 600 shares he sold at the 6 month mark

The partial sale does not affect his cost basis for the remaining 600 shares

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