Alcott invested $20,000 for a 25% interest in a partnership (not a passive activity) on January 1, 2016. The partnership borrowed $100,000 (with full recourse to the partners) on January 15, 2016, to cover short-term cash flow requirements. During the year, the partnership generated a $60,000 loss. By December 31, 2016, the partnership had paid off $20,000 of the loan. What is Alcotts at-risk amount on January 1, 2017?

a..$25,000.

b..$45,000.

c..$40,000.

d..$20,000.