Murd Corporation, a domestic corporation, acquired a 90%
interest in the Drum Company in 2009 for $30,000. During
2013, the stock of Drum was declared worthless. What type and
amount of deduction should Murd take for 2013?

(c) Worthless securities generally receive capital loss
treatment. However, if the loss is incurred by a corporation on its
investment in an affiliated corporation (80% or more ownership),
the loss is generally treated as an ordinary loss.