2During the tax year, Jackie earned $75,000 of W-2 income from an S corporation in which she had a total investment of $5,000; the S corporation showed a loss of $10,000. All of the following regarding the at-risk rules is correct except: A. The at-risk rules must be applied to the income or loss from covered activities before passive activity rules are considered. B. Any disallowed losses from these activities due to the at-risk rules are allowed as a deduction from income of the same activity in the next tax year. C. The at-risk rules limit the number of losses a taxpayer can recognize from most activities to the amount of their at-risk investment in the business or activity. D. The at-risk rules do not allow her to recognize or deduct any S corporation loss because it was a passive activity.