1. Karen formed Grebe Corporation with an investment of $100000cash for which sh

1. Karen formed Grebe Corporation with an investment of $100000cash for which she received $10000 in stock and $90000 in 9%interest-bearing bonds maturing in ten years. A few years laterKaren loaned Grebe an additional $40000 on open account. Grebebecomes insolvent in the current year and is adjudged bankrupt.Karen was the president of Grebe Corporation and was paid an annualsalary of $30000 for the past three years. Karen has no otheremployment. How will Karen treat her losses for tax purposes?