Jorge Owns Activity X Which Produced a $20,000 Passive Loss

Jorge owns activity X which produced a $20,000 passive loss last year. Jorge's only income last year was wages of $30,000. Jorge is a material participant in activity X this year when it produces a $14,000 loss. This year, Jorge's wages are $40,000. This year, Jorge also has passive activity income from activity Y of $16,000. What is the total passive activity loss carryover to next year?

A) $4,000
B) $18,000
C) $3,000
D) $0