Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year

a. Wren Corporation is not permitted a deduction for the loans.
b. The loans result in a nonbusiness bad debt deduction to Wren Corporation.
c. The loans provide Wren Corporation with a business bad debt deduction.
d. Wren claims a capital loss due to the uncollectible loans.
e. None of the above.


c
RATIONALE: Corporate shareholders can only have business bad debts.

Business

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