The Gilpin partnership has an operating loss of $400,000 for the current year. Hawkins is a general partner and owns 40% interest in the partnership. At the beginning of the year, Hawkins' adjusted basis in the partnership interest is $30,000. During the year, the partnership borrows $120,000 with a recourse note. How much of the partnership loss can Hawkins deduct on his current-year income tax return?

a. $-0-

b. $30,000

c. $70,000

d. $78,000

e. $200,000