At the beginning of $2023,$ Ms$.$ Pope purchased a $15$ percent interest in PPY Partnership for $$25,000.$ Ms$.$ Pope's Schedule K$-1$ reported that her share of PPY$\text{'}$s debt at year$-$end was $$28,000,$ and her share of ordinary loss was $$49,250.$ On January $1,2024,$ Ms$.$ Pope sold her interest to another partner for $$3,600$ cash.

Required:

a$.$ How much of her share of PPY$\text{'}$s loss can Ms$.$ Pope deduct on her $2023$ return?

b$.$ Compute Ms$.$ Pope's recognized gain on sale of her PPY interest.

c$.$ How would your answers to parts a and $b$ change if PPY were an S corporation instead of a partnership?

Complete this question by entering your answers in the tabs below.

Required A

How much of her share of PPY$\text{'}$s loss can Ms$.$ Pope deduct on her $2023$ return?

Deduction $ $49,250$