In 2017, Liam invested $100,000 for a 25% interest in a partnership involved in an activity in which he is a material participant. The partnership reported losses of $340,000 in 2017 and $180,000 in 2018 with Liam’s share being $85,000 in 2017 and $45,000 in 2018. How much of the losses can Liam deduct?
a.$0 in 2017, $0 in 2018.
b.$85,000 in 2017, $0 in 2018.
c.$85,000 in 2017, $15,000 in 2018.
d.$85,000 in 2017, $45,000 in 2018.
e.None of the above.