Star LLC, is involved in manufacturing activities. Sarah, a 60% owner and active member in Star LLC, has a beginning basis for his LLC interest of $200,000 on January 1, which includes his $30,000 share of Stars recourse debt and his $15,000 share of Stars nonrecourse debt. Sarah did not personally guarantee any of Stars debt. The LLCs liabilities were the same amount at the end of the tax year. If Star LLC, reports an operating loss this year of ($500,000), the amount of loss Sarah can deduct this year is:

A. ($300,000)

B. ($200,000)

C. ($185,000)

D. ($155,000)

E. None of the Above