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Daffy is a janitor at ABC Company. He lent the company $10,000 but was unable to collect it because the company went bankrupt a year

Daffy is a janitor at ABC Company. He lent the company $10,000 but was unable to collect it because the company went bankrupt a year after the loan was made. Daffy did not own any stock in the company, and the loan was not a condition of employment. How should Daffy report this loss?

CHOICES

A Long term Capital Loss

B Short term Capital Loss

C Business Bad Debt

D Nondeductible Loss

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