In Year 1, Lena invests $80,000 for a 20% partnership interest in an activity in which she works full time. The partnership reports losses of $300,000 in Year 1 and $150,000 in Year 2. Lenas share of the partnerships losses is $60,000 in Year 1 and $30,000 in Year 2. How much, if any, of Lenas losses will be suspended?

1. No suspended losses; no at risk losses.
2. Year 1 passive losses suspended $60,000; Year 2 $20,000 passive loss suspended and $10,000 at risk suspended.
3. Year 1 no suspended losses; Year 2 $30,000 suspended for at risk.
4. Year 1 no suspended losses; Year 2 $20,000 passive loss and $10,000 suspended for at risk.