Peter,proprietor of Peter's Easy Loan Company,loaned Jessie $4,000 on December

Peter,proprietor of Peter's Easy Loan Company,loaned Jessie $4,000 on December 1,2014.The loan is to be repaid on December 1,2015,along with $600 interest.On July 10,2015,Peter learns that Jessie has filed for personal bankruptcy and that non-secured creditors will receive only $0.60 on the dollar.Peter actually receives nothing until February 24,2016.On that date,Peter receives a check for $1,000 from Jessie's bankruptcy proceedings in final settlement of the loan.How should Peter account for the loan to Jessie?

A) $1,600 short-term capital loss in 2015; and $1,400 short-term capital loss in 2016.
B) $3,000 ordinary loss in 2015.
C) $2,400 ordinary loss in 2015.
D) $1,600 ordinary loss in 2015; and $1,400 ordinary loss in 2016.
E) $3,000 short-term capital loss in 2016.