(2 points) Sallys at-risk amount in a passive activity was $55,000 at the beginning of 2018. Her loss from the activity in 2018 is $75,000, and she had no passive activity income during the year. In 2019, Sally had $40,000 of passive activity income from the activity.

a. How much of the losses can Sally deduct in 2018 and 2019?

b. At the end of 2019, what is the total amount of suspended loss under the Passive Activity Loss rules? Also, what is her at-risk amount in the activity at the end of 2019?