Kacie is a 30 percent owner in Crisp Potato, LLC, a French fry manufacturer. She is also a 20 percent owner in WhyBurger, LLC a successful restaurant. She does not materially participate in either business. Her at-risk and loss/income for the current year is as follows:

• Crisp Potato LLC - At-risk = $140,000; Loss of $260,000
• WhyBurger - At-risk = $61,000; Income of $110,000

She also has wage income of $130,000 and capital gain income of $22,000. Which of the following statements is true?

• A.

  The loss suspended because of the at-risk rules is $30,000 and the loss suspended because of the passive activity loss rules is $120,000.

• B.

  The loss suspended because of the at-risk rules is $140,000 and the loss suspended because of the passive activity loss rules is $0.

• C.

  The loss suspended because of the at-risk rules is $120,000 and the loss suspended because of the passive activity loss rules is $30,000.

• D.

  The loss suspended because of the at-risk rules is $61,000 and the loss suspended because of the passive activity loss rules is $110,000.