Chloe is a 50% general partner in Angel Partnership, a calendar year partnership. On January 1 of the current year, her basis in her partnership interest is $38,000 (which includes her share of partnership liabilities). During the current year, Angel repaid a $10,000 nonrecourse liability. In the current year ended December 31, Angel also reported a total net operating loss of ($80,000) and earned total interest income from investments of $5,000. The partnership made no distributions in the current year. Assuming Chloe is at-risk for the same amount as her basis and this is not a passive investment to her, the amount of ordinary loss she can deduct this year:

A. ($40,000)

B. ($38,000)

C. ($35,500)

D. ($33,000)