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Please complete parts a, b, and c. Thank you! At the beginning of Year 1 Ms. Mushroom, an individual, purchased a 20 percent interest in
Please complete parts a, b, and c. Thank you!
At the beginning of Year 1 Ms. Mushroom, an individual, purchased a 20 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 $23,000, and her share of ordinary loss was $42,200. On January 1. Year 2. Ms. Mushroom sold her interest to another partner for $3,100 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 How much of her share of Fungi's loss can Ms. Mushroom deduct on her Year 1 tax return? Deduction NA Required B> Step by Step Solution
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