Rita Earns a Salary of $150,000,and Invests $40,000 for a 20

Rita earns a salary of $150,000,and invests $40,000 for a 20% interest in a passive activity.Operations of the activity result in a loss of $250,000,of which Rita's share is $50,000.How is her loss characterized?

A) $40,000 is suspended under the passive loss rules and $10,000 is suspended under the at-risk rules.
B) $40,000 is suspended under the at-risk rules and $10,000 is suspended under the passive loss rules.
C) $50,000 is suspended under the passive loss rules.
D) $50,000 is suspended under the at-risk rules.
E) None of the above.