Sarah is a 10 percent owner in Canine Connection, LLC, a day-care center for dogs. She is also a 15 percent owner in Little Laughter, LLC a successful childrens clothing store. She does not materially participate in either business. Her at-risk and loss/income for the current year is as follows:

Canine Connection - At-risk = $175,000; Loss of $275,000

Little Laughter - At-risk = $25,000; Income of $125,000

She also has wage income of $80,000 and capital gain income of $30,000. Which of the following statements is true?

a. The loss suspended because of the at-risk rules is $75,000 and the loss suspended because of the passive activity loss rules is $75,000.

b. The loss suspended because of the at-risk rules is $75,000 and the loss suspended because the passive activity loss rules is $0.

c. The loss suspended because of the at-risk rules is $50,000 and the loss suspended because the passive activity loss rules is $100,000.

d. The loss suspended because of the at-risk rules is $100,000 and the loss suspended because of the passive activity loss rules is $50,000.