Question - The Brady Partnership had an ordinary operating loss of $400,000 for the current year. Lonnie has a 30% interest in the partnership, and he materially participates in the partnership's business. At the beginning of the year, Lonnie's adjusted basis in the partnership was $50,000. During the year, the partnership borrowed $100,000, which was the only outstanding debt at year end. Both partners are personally liable for the partnership's debt, and there are no special agreements. What amount can Lonnie claim as a loss on his current-year individual income tax return?
A $50,000
B $120,000
C $80,000
D $150,000