On January 18, 2011, Martha Purchased 200 Shares of Blue

Essay

On January 18, 2011, Martha purchased 200 shares of Blue Corporation stock for $2,000.On November 11, 2012, she sold short 200 shares of Blue Corporation stock which she borrowed from her broker for $2,300.On February 10, 2013, Martha closed the short sale by delivering the 200 shares of Blue Corporation stock which she had acquired in 2011.On that date, Blue Corporation stock had a market price of $4 per share.What is Martha's recognized gain or loss and its character in 2012? In 2013?