Arvin's Adjusted Basis in the Gamma Partnership Is Zero at the Beginning

Multiple Choice

Arvin's adjusted basis in the Gamma Partnership is zero at the beginning of the current year.He has a $15,000 suspended loss from the previous year.During the current year,Gamma's operating income is $30,000.Arvin is a 40% partner,and he receives a distribution of $10,000 cash this year.If Arvin materially participates in Gamma's operations,how much of the suspended loss can he deduct?

A) $ -0-
B) $ 2,000
C) $ 9,000
D) $10,000
E) $12,000