This year Barney purchased 600 shares of Bell common stock for $25.00 per share. At year-end, the Bell shares were only worth $2.50 per share. What amount can Barney deduct as a loss this year?

Multiple Choice

• $15,000.

• $13,500.

• $1,500.

• Barney can deduct $15,000 only if he includes $1,500 in his taxable income.

• None of the choices are correct - Barney is not entitled to a loss deduction.