Partnership Y reported a $50,000 ordinary loss for its first year of operation. Partner Alex, who materially participates, had invested $10,000 cash in exchange for a 60% interest in partnership profits. The partnership agreement stated that Alex was liable for all of the partnership's debts. The only partnership debt at year end was a $10,000 loan from a local bank. Alex and the general partner had a separate agreement that Alex's liability to the bank would not exceed $5,000. What is the amount of Alex's deductible loss?

A. $30,000 B. $20,000 C.$15,000 D. $10,000