Choice "B" is correct. Losses between a controlling partner (over 50% interest in capital and profits) and his controlled partnership from the sale or exchange of property are not allowed. Thus the disallowance of the $6,000 loss would make the ordinary income $91,000 and 80% of that is $72,800.

Choice "a" is incorrect. This results if the loss is subtracted again from the partnership's ordinary income [($85,000 - 6,000) x 80%=$63,200].

Choice "c" is incorrect. This answer did not disallow the loss but merely took 80% of the $85,000.

Choice "d" is incorrect. This answer is the total loss of the partnership. It must be multiplied by the partner's ownership interest.