1. In Year 1, Laura lent Pat $2,000. At that time, Pat signed an enforceable note agreeing to repay the $2,000. The loan was not made in the course of Laura’s business. The loan had not been repaid in Year 3 when Pat died insolvent. For Year 3, Laura should report the nonpayment of the loan as a(n).
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3. A.Short-term capital loss.
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5. B.Long-term capital loss.
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7. C.Ordinary loss.
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9. D.Other itemized deduction.

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