At the beginning of 2018, Ms. P purchased a 20 percent interest in PPY Partnership for $24,000. Ms. Ps Schedule K-1 reported that her share of PPYs debt at year-end was $18,000, and her share of ordinary loss was $37,200. On January 1, 2019, Ms. P sold her interest to another partner for $2,600 cash.

A. How much of her share of PPYs loss can Ms. P deduct on her 2018 return?

B. Compute Ms. Ps 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?