A corporation with common stock outstanding declares a nontaxable dividend payable in rights to subscribe to common stock on June 30 of the current year. Each right entitles the holder to purchase one share of stock for $25. One right is issued for every share of stock owned. Nexsen owns 100 shares of stock purchased ten years ago for $1,000. At the time of the distribution of the rights, the market value of the common stock is $40 per share, and the market value of the rights is $5 per right. Nexsen receives 100 rights. On September 30, he exercises 75 of the rights and sells the remaining 25 rights for $6 per right. If Nexsen does not allocate his original stock basis to the rights, his basis of the new stock is