Mia Is a 50% Partner in a Partnership with a Beginning

Mia is a 50% partner in a partnership with a beginning of the year adjusted basis in her partnership interest of $50,000. For the current year, no distributions are made to partners, and there is no change in partnership liabilities. The partnership incurred a $140,000 ordinary loss for the year. How does Mia treat her loss in excess of basis?

A) She will first carry back the excess loss three years and then carry forward the balance up to five years.
B) She will recognize $3,000 this year and carry forward the balance.
C) She will first carry back the excess loss for two years and then carry forward the balance up to 20 years.
D) She will carry over the excess loss indefinitely until a subsequent year when she again has a positive basis in her partnership interest.