Tax treatment of deposit paid to a company that subsequently went into liquidation.

Just wondering about the tax treatment on the following scenario:

Farmer paid a $5k deposit to a Company for Farming Equipment. The Company subsequently went into voluntary liquidation before equipment was provided.

How is this deposit treated in the farmers accounts for the year? Outcome of voluntary liquidation might not be known for a few years. Farmer is unlikely to get either the equipment or a full refund of deposit.

Thanks.

Write it off as an expense.

If they ever recover part of it, write back that part as income.

thank you