This Year Barney Purchased 640 Shares of Bell Common Stock

This year Barney purchased 640 shares of Bell common stock for $19.20 per share. At year-end the Bell shares were only worth $2.40 per share. What amount can Barney deduct as a loss this year?

A) $12,288
B) $10,752
C) $1,536
D) Barney can deduct $12,288 only if he includes $1,536 in his taxable income
E) None of the choices are correct - Barney is not entitled to a loss deduction