This Year Barney Purchased 500 Shares of Bell Common Stock

This year Barney purchased 500 shares of Bell common stock for $20 per share. At year-end the Bell shares were only worth $2 per share. What amount can Barney deduct as a loss this year?

A) $10,000
B) $9,000
C) $1,000
D) Barney can deduct $10,000 only if he includes $1,000 in his taxable income.
E) None of the choices are correct - Barney is not entitled to a loss deduction.