In 2011,Pearl Invests $80,000 for a 10% Partnership Interest in an Activity

In 2011,Pearl invests $80,000 for a 10% partnership interest in an activity in which she is a material participant.The partnership reports losses of $500,000 in 2011 and $450,000 in 2012.Pearl's share of the partnership's losses is $50,000 in 2011 and $45,000 in 2012.How much of the losses can Pearl deduct?

A) $50,000 in 2011 and $30,000 in 2012.
B) $50,000 in 2011 and $45,000 in 2012.
C) $0 in 2011 and $0 in 2012.
D) $50,000 in 2011 and $0 in 2012.
E) None of the above.