Bailey Owns a 20% Interest in a Partnership Not Involved

Multiple Choice

Bailey owns a 20% interest in a partnership not involved in real estate) in which his at-risk amount was $25,000 at the beginning of the year.During the year,Bailey receives a distribution of $20,000 from the partnership.The partnership produces an $80,000 loss during the year.If you ignore the passive loss rules,Bailey's deductible loss for the year is:

A) $25,000.
B) $80,000.
C) $5,000.
D) $20,000.