Which of the following partners will be allowed to deduct the entire loss shown on their K-1 (form 1065)?

1. Angelo shows a $12000 loss. His beginning basis was $10000. He contributed $1000 cash during the year, and his share of the partnership's liabilities increased by $2000

2. Mark shows a $20000 loss. His beginning basis was $26000. He took a $3000 cash distribution, and his share of the partnership's liabilities decreased by $4000

3. Michelle shows a $36000 loss. Her beginning basis was $40000. She took a $10000 cash distribution, and her share of the liabilities increased by $2000

4. Pedro shows a $42000 loss. His beginning basis was $35000. He contributed $10000 in cash during the year, and his share of the liabilities decreased by $4000