Edward is a 20 percent owner in Bistro Lettuce, LLC, a gourment lettuce processing center. He is also a 30 percent owner in HoneyDresssing, LLC a successful dressing manufacturer. He does not materially participate in either business. His at-risk and loss/income for the current year is as follows:

• Bistro Lettuce LLC - At-risk = $189,000; Loss of $351,000
• Honey Dressing LLC - At-risk = $97,000; Income of $246,000

She also has wage income of $209,000 and capital gain income of $49,000. Which of the following statements is true?

• A.

  The loss suspended because of the at-risk rules is $97,000 and the loss suspended because of the passive activity loss rules is $110,000.

• B.

  The loss suspended because of the at-risk rules is $162,000 and the loss suspended because of the passive activity loss rules is $0.

• C.

  The loss suspended because of the at-risk rules is $189,000 and the loss suspended because of the passive activity loss rules is $0.

• D.

  The loss suspended because of the at-risk rules is $0 and the loss suspended because of the passive activity loss rules is $162,000.