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On January 18, 2016, Martha purchased 200 shares of Blue Corporation stock for $2,000. On November 11, 2017, she sold short 200 shares of Blue Corporation stock which she borrowed from her broker for $2,300. On February 10, 2018, Martha closed the short sale by delivering the 200 shares of Blue Corporation stock which she had acquired in 2016. 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 2017? In 2018?
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