Tuna,Inc ,A Closely Held Corporation Which Is Not a PSC,owns

Multiple Choice

Tuna,Inc. ,a closely held corporation which is not a PSC,owns a 40% interest in Trout Partnership,which is classified as a passive activity.Trout's taxable loss for the current year is $200,000.During the year,Tuna receives a $60,000 cash distribution from Trout.Other relevant data for Tuna are as follows:

How much of Tuna's share of Trout's loss may it deduct in calculating its taxable income?

A) $0.
B) $25,000.
C) $60,000.
D) $80,000.
E) None of the above.