1. Your client, Manny Mendacious, invested $70,000 in the stock of a new start-up company that opened a chain of fried pickle fast-food restaurants called The Cooked Cucumber. As might be expected, this venture has not been very successful, and Manny's stock has lost its value. Manny knows that worthless securities are normally treated as a capital loss, which means the $3,000 annual maximum deduction and other limits apply. While talking to one of his co-investors, he discovers that her tax advisor contends that if a taxpayer "abandons" a security it is not subject to the capital loss limitation. Manny is very excited about this and is anxious to assert he "abandoned" the Cooked Cucumber stock and deduct the entire $70,000 loss in the current year. Prepare a research memo to explain the proper tax treatment of Manny's loss. eded to swim daily to