At the beginning of Year $1Ms.$ Mushroom, an individual, purchased a $15$ percent interest in Fungi Partnership for $$24,000.$ Ms$.$ Mushroom's Schedule K$-1$ reported that her share of Fungi's debt at year$-$end was $$31,000,$ and her share of ordinary loss was $$51,400.$ On January $1,$ Year $2,$ Ms$.$ Mushroom sold her interest to another partner for $$3,900$ cash.

Required:

a$.$ How much of her sh$$re of Fungi's loss can Ms$.$ Mushroom deduct on her Year $1$ tax.return?

b$.$ Compute Ms$.$ Mushroom's recognized gain on sale of her Fungi Partnership interest.

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

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

How much of her share of Fungi's loss can Ms$.$ Mushroom deduct on her Year $1$ tax return?

$\backslash$table$[[$Deduction$,$$$,(3\mathrm{.}600)$