Wren Corporation (A Minority Shareholder in Lark Corporation) Has Made

Multiple Choice

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.