Tim loaned a friend $4000 to buy a used car. In the current year, Tim's friend declares bankruptcy and the debt is considered totally worthless. What amount may tim deduct on his individual income tax returen for the current year as a result of the worthless debt, assuming he has no other capital gains or losses for the year?

a. $4000 ordinary loss

b. $4000 short-term capital (STCL) loss

c. $2000 short-term capital (STCL) loss

d. $3000 ordinary loss

e. $3000 short term capital (STCL loss)