This Year Barney Purchased 300 Shares of Bell Common Stock

This year Barney purchased 300 shares of Bell common stock for $24.00 per share. At year-end the Bell shares were only worth $4.00 per share. What amount can Barney deduct as a loss this year?

A) $7,200
B) $6,000
C) $1,200
D) Barney can deduct $7,200 only if he includes $1,200 in his taxable income
E) None of the choices are correct - Barney is not entitled to a loss deduction