a taxpayer loaned$2000 to her best friend in 2011. The friend filed for bankruptcy in 2013 atwhich time the taxpayer was told to expect to receive...

a taxpayer loaned$2000 to her best friend in 2011. The friend filed for bankruptcy in 2013 atwhich time the taxpayer was told to expect to receive $.60 on thedollar on this personal loan. On February 2, 2014 the taxpayer received finalsettlement of $950.00. How much can the taxpayer deduct in 2013 and 2014, andhow will the loss be treated on the return?

A)  2013:$800 short term capital loss; 2014 $250 short term capital loss

B)  2013:$0; 2014 $1,050 short term capital loss

C)  2013:$800 long term capital loss; $250.00 long term capital loss

D)  2013:$0; 2014 $1,050 long-term capital Loss

E)  Noneof the above