Sue invested $5,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $20,000 of qualified nonrecourse debt and $20,000 of debt Sue is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt, resulting in a tax basis of $9,000 and an at-risk amount of $7,000. During the year, ABC LP generated a ($90,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?

• $0; all of her loss is allowed to be deducted.

• $2,000 disallowed because of her at-risk amount.

• $2,000 disallowed because of her tax basis.

• $4,000 disallowed because of her tax basis.

• $4,000 disallowed because of her at-risk amount.