Five years ago, Randy loaned an offspring, Neige, $$40,000$ to start a business. A note was executed with an interest rate of $8\%.$ The note required monthly payments of the interest with the $$40,000$ due at the end of $10$ years. Neige always made the interest payments until last year. During the current year, Randy was notified that Neige was bankrupt and would not be able to repay the $$40,000$ or the accrued interest of $$3,200.$ Randy is a cash basis taxpayer whose only income is salary and interest income. The proper treatment for the nonpayment of the note is:

a$.$ No deduction.

b$.$ A $$3,000$ deduction.

c$.$ A $$43,200$ deduction.

d$.$ A $$40,000$ deduction.

e$.$ A $$3,200$ deduction.