Refer to The Big Picture at the beginning of Chapter 7 of the textbook. Prepare a discussion board post commenting on your response to Martha. Your discussion will include references to outside information as necessary. You should also respond to two other discussion board responses.

Topic: Week 5 Discussion Boar x C Get Homework Help With Che X C Chegg eReader GRefer to "The Big Picture" at th x + C chegg.com/reader/9780357109700/326/ : Search keywords, chapter or page # Q THE BIG PICTURE TETRA IMAGES/GETTY IMAGES LOSSES Martha, a cash basis and calendar year taxpayer, is nearing the end of a year she would like to forget. Sev- eral years ago she loaned $25,000 to her friend Janice to enable her to start a business. Janice had made scheduled payments of $7,000 ($1,000 of this was interest) when she unexpectedly died in January. At the time of her death, Janice was insolvent. Martha's attempts to collect on the debt were fruitless. Last October, Martha invested $50,000 in the stock of a pharmaceutical company that previously had been profitable. However, as a result of losing a patent infringement suit, the company declared bankruptcy in May of this year. The bankruptcy trustee has informed shareholders that they should not expect to receive anything from the company, Martha has owned and operated a bookstore as a sole proprietorship for the past 10 years. The bookstore previously produced annual profits of about $75,000. Due to the growth of online vendors and e-books, Martha's bookstore sustained a net loss of $180,000 this year. In September, a hurricane caused a large oak tree to blow over onto Martha's house. In the aftermath of the hurricane, Martha's county was designated a Federal disaster area by the President. The cost of removing the tree and making repairs was $32,000. Martha received a check for $25,000 from her insurance company in final settlement of the claim. Her adjusted basis for the house was $280,000. In March, Martha purchased what she believed to be 1244 stock from her friend Peter for $20,000. The stock's value began to decline significantly soon after its purchase. Several months after her purchase, Martha sold the stock for $12,000. Can you help relieve Martha's feeling of despair by making her aware of beneficial loss provisions in the tax law? Read the chapter and formulate your response. Topic: Week 5 Discussion Boar x C Get Homework Help With Che X C Chegg eReader GRefer to "The Big Picture" at th x + C chegg.com/reader/9780357109700/326/ : Search keywords, chapter or page # Q THE BIG PICTURE TETRA IMAGES/GETTY IMAGES LOSSES Martha, a cash basis and calendar year taxpayer, is nearing the end of a year she would like to forget. Sev- eral years ago she loaned $25,000 to her friend Janice to enable her to start a business. Janice had made scheduled payments of $7,000 ($1,000 of this was interest) when she unexpectedly died in January. At the time of her death, Janice was insolvent. Martha's attempts to collect on the debt were fruitless. Last October, Martha invested $50,000 in the stock of a pharmaceutical company that previously had been profitable. However, as a result of losing a patent infringement suit, the company declared bankruptcy in May of this year. The bankruptcy trustee has informed shareholders that they should not expect to receive anything from the company, Martha has owned and operated a bookstore as a sole proprietorship for the past 10 years. The bookstore previously produced annual profits of about $75,000. Due to the growth of online vendors and e-books, Martha's bookstore sustained a net loss of $180,000 this year. In September, a hurricane caused a large oak tree to blow over onto Martha's house. In the aftermath of the hurricane, Martha's county was designated a Federal disaster area by the President. The cost of removing the tree and making repairs was $32,000. Martha received a check for $25,000 from her insurance company in final settlement of the claim. Her adjusted basis for the house was $280,000. In March, Martha purchased what she believed to be 1244 stock from her friend Peter for $20,000. The stock's value began to decline significantly soon after its purchase. Several months after her purchase, Martha sold the stock for $12,000. Can you help relieve Martha's feeling of despair by making her aware of beneficial loss provisions in the tax law? Read the chapter and formulate your response