Clara purchased for $100,000 a 10% interest in a business venture that is not subject to the passive activity rules. During the first year, her share of the entitys loss was $120,000. At the beginning of the second year, the entity obtained $800,000 of recourse financing. Also during the second year, Clara withdrew cash of $20,000, and her share of the entitys loss was $25,000.

Calculate the amount of loss that Clara may claim in each of the two years and determine her at-risk amount at the end of each year.