On September 3, 2018, Aaron, a single individual, purchased 1244 stock in Red Corporation from his friend Peter for $60,000. On December 31, 2018, the stock was worth $85,000. On August 15, 2021, Aaron was notified that the stock was worthless. How should Aaron report this item on his 2021 tax return?

a. $85,000 capital loss.

b. $85,000 ordinary loss.

c. $60,000 ordinary loss.

d. $60,000 capital loss.