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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

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)

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$(5,000)

-0-

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