Three years ago, Sharon loaned her sister $30,000 to buy a car. A note was issued for the loan with the provision for monthly payments of principal and interest. Last year, Sharon purchased a car from the same dealer, Hanks Auto. As partial payment for the car, the dealer accepted the note from Sharons sister. At the time Sharon purchased the car, the note had a balance of $18,000. During the current year, Sharons sister died. Hanks Auto was notified that no further payments on the note would be received. At the time of the notification, the note had a balance due of $15,500. What is the amount of loss with respect to the note that Hanks Auto may claim on the current year tax return?

a. $0

b. $3,000

c. $15,500

d. $18,000