Norbert dies owning a passive activity with an adjusted basis of $240,000. Its fair market value at that date is $300,000. Suspended losses relating to the property were $80,000. Which of the following statements is true?

The heir's adjusted basis is $300,000, and Norbert's final deduction is $80,000.

The heir's adjusted basis is $240,000, and Norbert's final deduction is $80,000.

The heir's adjusted basis is $240,000, and Norbert's final deduction is $20,000.

The heir's adjusted basis is $300,000, and Norbert's final deduction is $20,000.

None of the above.