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Wagih (not in the loan business) loaned Tom $5,000 two years ago. During the current year, Tom was declared bankrupt. How should Wagih account for
Wagih (not in the loan business) loaned Tom $5,000 two years ago. During the current year, Tom was declared bankrupt. How should Wagih account for the loan on the current year's tax return?
a. Long-term capital loss.
b. Short-term capital loss.
c. Deduction from adjusted gross income.
d. Ordinary loss.
e. None of the above.
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