Waverly, a single taxpayer, is an S corporation shareholder and materially participates in the business. In the current year, Waverly's share of losses is $$325,000.$ Waverly also received a salary from the corporation of $$80,000.$ At the beginning of the year, Waverly had a basis in the S corporation stock of $$500,000.$ Which of the following statements regarding how much excess business loss Waverly has is true?

a$.$ Waverly is not entitled to an excess business loss under these circumstances.

b$.$ Waverly can use $$305,000$ of the $$325,000$ loss against other nonbusiness income. Waverly's excess business loss is $$305,000.$

c$.$ Waverly can use the $$325,000$ loss against other nonbusiness income. Waverly's excess business loss is $$325,000.$

d$.$ Waverly can use the entire amount of the share at the beginning of the year. Waverly's excess business loss is $$500,000.$

e$.$ Waverly can use $$305,000$ of the $$325,000$ loss against other nonbusiness income. Waverly's excess business loss is $$20,000.$