Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year.

a. The loans provide Wren Corporation with a business bad debt deduction. b. The loans result in a nonbusiness bad debt deduction to Wren Corporation. c. Wren Corporation is not permitted a deduction for the loans. d. Wren claims a capital loss due to the uncollectible loans. e. None of these choices are correct.