Taxpayer invested $5,400 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $20,800 of debt Taxpayer is not responsible to repay because she is a limited partner. Taxpayer is allocated a 10 percent share of the debt, resulting in a tax basis of $7,480 and an at-risk amount of $5,400. During the year, ABC LP generated a ($74,800) loss. How much of Taxpayer's loss is disallowed due to her tax basis or at-risk amount?

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

B. $4,160 disallowed because of her at-risk amount.

C. $4,160 disallowed because of her tax basis.

D. $2,080 disallowed because of her tax basis.

E. $2,080 disallowed because of her at-risk amount.