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I1 Martin Properties, Inc., sold marketable securities it held as capital asset to Anna Phelps, its CFO and 60% majority shareholder for $95,000. Because Martin
I1
Martin Properties, Inc., sold marketable securities it held as capital asset to Anna Phelps, its CFO and 60% majority shareholder for $95,000. Because Martin had a $100,000 tax basis in the securities, it realized a $(5,000) disallowed loss on the sale. Two years later, Anna sold the securities through her broker for $90,000. Compute Anna's loss recognized on sale.
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$(10,000)
None of these choices are correct.
$(5,000)
-0-
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