Shanna Is a Partner in the Fern Partnership, Which Is

Multiple Choice

Shanna is a partner in the Fern Partnership, which is not publicly traded.Her allocable share of Fern's passive ordinary losses from a nonrealty activity for the current year is ($200,000) .Shanna has a $140,000 adjusted basis (outside basis) for her interest in Fern (before deduction of any of the passive losses) .Her amount "at risk" under § 465 is $110,000 (before deduction of any of the passive losses) .She also has $75,000 of passive income from other sources.How much of the $200,000 passive loss allocated to her can Shanna deduct on her current year's tax return?

A) $75,000
B) $110,000.
C) $140,000.
D) $200,000.
E) None of the above.