Sue invested $6,700 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $23,400 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of the debt, resulting in a tax basis of $9,040 and an at-risk amount of $6,700. During the year, ABC LP generated a ($90,400) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?

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

B. $2,340 disallowed because of her at-risk amount.

C. $2,340 disallowed because of her tax basis.

D. $4,680 disallowed because of her tax basis.

E. $4,680 disallowed because of her at-risk amount.

9. Alicent Hightower files as a married filing joint status. In 2023, she reported $89,850 of taxable income, including a $1,000 qualified dividend. What is her gross tax liability? (Use the tax rate schedules, long-term capital gains tax brackets.)

A. $10,372.

B. $10,382.

C. $10,235.

D. $10,312.

E. $10,222.