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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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