5. If a trader owns 100 shares of a stock purchased for $40 per share, and that stock now trades at $60, the mark-to-market value of the shares is equal to how much?

6. Timothy Adams, a dealer in securities, bought a security on June 7 of year 1 for $50. On December 31 of year 1, the fair market value of the security is $100. The security is not identified as an investment. What should Adams report for year 1?

7. Using the same facts from the previous question, Adams sells the security for $75 on July 10 of year 2. What should Adams report in Year 2?

8. Gain or loss from mark-to-market under IRC section 475 will be recognized as what character?