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Mara Teresa and Danilo are brother and sister. Mara Teresa sold stock to Danilo for $5,000, its fair market value. Mara Teresa had bought the

Mara Teresa and Danilo are brother and sister. Mara Teresa sold stock to Danilo for $5,000, its fair market value. Mara Teresa had bought the stock 5 years ago for a cost of $7,000. What is Mara Teresas recognized loss before the $3,000 capital loss limitation?:

a.$7,000

b.$2,000

c.$0

d.$3,000

e.$5,000

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