QUESTION $2$

Abe is a $50\%$ member in Sandy LLC$,$ which does not invest in real estate. On January $1,$ Abe's adjusted

basis for his LLC interest is $$120,000,$ and his at$-$risk amount is $$100,000.$ His share of losses from

Sandy for the current year is $$150,000,$ all of which is passive. Abe owns another investment that

produced $$80,000$ of passive activity income during the year. $($Assume that Abe is a single taxpayer,

there were no distributions or changes in liabilities during the year, and that the Sandy's loss is Abe's

only loss for the year from any activity.$)$ How much of Sandy's losses may Abe deduct on his Form

$1040?$

a$.$ $$0$

b$.$ $$80,000$

c$.$ $$100,000$

d$.$ $$120,000.$