Jed Is an Electrician

Jed is an electrician.Jed and his wife are accrual basis taxpayers and file a joint return.Jed wired a new house for Alison and billed her $15,000.Alison paid Jed $10,000 and refused to pay the remainder of the bill,claiming the fee to be exorbitant.Jed took Alison to Small Claims Court for the unpaid amount and was awarded a $2,000 judgment.Jed was able to collect the judgment but not the remainder of the bill from Alison.What amount of loss may Jed deduct in the current year?

A) $0
B) $2,000
C) $3,000
D) $5,000
E) None of these