$28\mathrm{.}0\%$ complete

Question

Last year Leona invested $$50,000$ for a $20\%$ partnership interest in an activity in which she is a material participant.$$ The partnership reported losses of $$200,000$ for last year and $$150,000$ of loss this year.$$ Leona$$s share of the partnership$$s losses is $$40,000$ last year and $$30,000$ this year.$$ How much of the losses can Leona deduct for the first two years?

A$.$$$40,000$ in Year $1$ and $$30,000$ in Year $2$

B$.$$$40,000$ in Year $1$ and $$10,000$ in Year $2$

C$.$$$0$ in Year $1$ and $$0$ in Year $2$

D$.$$$40,000$ in Year $1$ and $$0$ in Year $2$