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

Multiple Choice

Irvin'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