Choose the response that best completes the following statement. all prior-year unallowed losses are deductible in the current year when a taxpayer disposes of __________________?

a. Their entire interest in an activity in a fully taxable transaction to an unrelated party.

b. Their entire interest in an activity to a related party

c. A portion of their interest in an activity to an unrelated party.

d. A portion of their interest in a fully taxable transaction to a related party.