Which of the following statements regarding passive activity losses is CORRECT?

I. When determining the amount of suspended loss that may be used against income, the at$-$risk rules are applied before the passive activity loss rules.

II$.$ If a loss is not allowed because of the at$-$risk limitations$,$ the loss is a suspended loss eligible for deduction as a disposition of a passive activity.

a$)$

I only

b$)$

II only

c$)$

Both I and II

d$)$

Neither I nor II