Tropical Fruit Partnership is a calendar year general partnership with the following current year information:

Operating loss $(4,650,000)

Liabilities:

Note payable, Big Bank 465,000

Note payable, Pineapple (individual) 310,000

On January 1 Coconut bought 60% of Tropical Fruit Partnership for $697,500. How much of the operating loss may Coconut deduct currently? Assume the excess business loss limitation does not apply.

Group of answer choices

$1,240,000

$1,162,500

$1,007,500

$883,500