At the beginning of Year 1 Ms. Mushroom, an individual, purchased a 20 percent interest in Fungi Partnership for $23,000. Ms. Mushroom's Schedule K-1 reported that her share of Fungi's debt at year-end was $26,000, and her share of ordinary loss was $44,400. On January 1, Year 2, Ms. Mushroom sold her interest to another partner for $3,400 cash. Required: a. How much of her share 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. Required A Required B Required c How much of her share of Fungi's loss can Ms. Mushroom deduct on her Year 1 tax return? Deduction At the beginning of Year 1 Ms. Mushroom, an individual, purchased a 20 percent interest in Fungi Partnership for $23,000. Ms. Mushroom's Schedule K-1 reported that her share of Fungi's debt at year-end was $26,000, and her share of ordinary loss was $44,400. On January 1, Year 2, Ms. Mushroom sold her interest to another partner for $3,400 cash. Required: a. How much of her share 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. Required A Required B Required c Compute Ms. Mushroom's recognized gain on sale of her Fungi Partnership interest. Gain recognized At the beginning of Year 1 Ms. Mushroom, an individual, purchased a 20 percent interest in Fungi Partnership for $23,000. Ms. Mushroom's Schedule K-1 reported that her share of Fungi's debt at year-end was $26,000, and her share of ordinary loss was $44,400. On January 1, Year 2, Ms. Mushroom sold her interest to another partner for $3,400 cash. Required: a. How much of her share 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. Required A Required B Required c How would your answers to parts a and b change if Fungi were an S corporation instead of a partnership? Amount Deduction Gain recognized