During the current year, Pablo, a nurse who is single, has $95,000 of salary, $30,000 of income from dividends, and a $27,000 loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $110,000. Of the $27,000 loss, how much is deductible in the current year?

a. $20,000 b. $22,500 c. $24,500 d. $25,000 e. $27,000