In 2018, Amber Festerton had $3,500 of unallowed passive losses due to the passive loss limitations. In 2019, Amber had passive income of $2,000 from the same passive activity. How would Amber treat the prior-year unallowed passive losses of $3,500 in 2019?

a. Amber can deduct the entire prior-year passive loss of $3,500 in 2019.

b. Amber can deduct $2,000 of the prior-year passive losses in 2019 and carry $1,500 of the prior-year passive losses to future years.

c. Amber can deduct $1,500 of the prior-year passive losses in 2019 and carry $2,000 of the prior-year passive losses to future years.

d. Amber cannot deduct any of the $3,500 of prior-year passive losses in 2019.