Bill is a 10% partner in XYZ, which is a passive investment to him. His basis in his partnership interest is $80,000 before loss allocations. The $80,000 includes: (1) his allocated share of the partnership's recourse debt; his share is $10,000; and (2) his allocated share of the nonrecourse debt; his share is $15,000. (The nonrecourse debt is not qualified nonrecourse financing.) Bill is allocated a ($90,000) ordinary loss from XYZ (i.e., his share of the loss). Bill is also a 10% partner in ABC, which is a passive investment to him as well. Bill is allocated $70,000 of income from ABC. The amount of ordinary loss Bill can deduct from XYZ this year is:

a. ($55,000).

b. ($65,000).

c. ($70,000).

d. ($80,000).

e. none of the above.