Henry had no trades this year but Downoutsco, Inc. of which Henry owned 200 shares (total cost: $4,000) declared bankruptcy in January of 2017. The…

Henry had no trades this year but Downoutsco, Inc. of which Henry owned 200 shares (total cost: $4,000) declared bankruptcy in January of 2017.

The loss on the stock: (a) gives a $4,000 deduction for the year, (b) gives a $3,000 deduction for the year, (c) is treated as bad debt