The investor has to declare a capital gain of $15 in the first year and a capital loss of $20 in the second year. To avoid double counting, the purchase price must be adjusted to take into account the capital gains or losses that have already accrued to the investor. By selling the shares in the second year, only the $15 capital gain has accrued, and thus the purchase price would be (200 + 15) = \`215$. Note: If the investor were to sell during the third year, both the capital gain of $15` and the capital loss of `$20 would have accrued, giving an adjusted purchase price of $(200 + 15 - 20) = \$195`$