Henry Hoover Operates a Freight Line Which Delivers a Substantial

Henry Hoover operates a freight line which delivers a substantial number of boats made by Walter Company. During 2012, Henry made a loan of $45,000 to Walter Company in order to maintain their business. Walter Company went bankrupt in 2012 and did not repay Henry's loan. Henry is entitled to which of the following in 2012?

A) $0 loss
B) $3,000 short-term capital loss
C) $27,000 long-term capital loss
D) $45,000 ordinary loss
E) $45,000 short-term capital loss