Catfish,Inc

Multiple Choice

Catfish,Inc. ,a closely held corporation which is not a PSC,owns a 45% interest in Trout Partnership,which is classified as a passive activity.Trout's taxable loss for the current year is $250,000.During the year,Catfish receives a $60,000 cash distribution from Trout.Other relevant data for Catfish are as follows: How much of Catfish's share of Trout's loss may it deduct in calculating its taxable income?

A) $0.
B) $20,000.
C) $45,000.
D) $112,500.
E) None of the above.