47. Mark’s father, Michael, loaned Mark $300,000 interest free for five years to invest in securities that yield a 10 percent annual return. At the end of the five years, Mark sells the securities to repay his father. Unfortunately, the market declined and Mark was able to sell the securities for only

$280,000. Michael accepted the $280,000 as payment in full on the loan.

How do you think this transaction will be treated for tax purposes?