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Homework $10/12$

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Problem $10-28($Algo$)[$LO $10-6,10-7,$ LO $10-9]$

At the beginning of $2024,$ Ms$.$ Pope purchased a $20$ percent interest in PPY Partnership for $$22,000.$ Ms$.$ Pope$$s Schedule K$-1$ reported that her share of PPY$$s debt at year$-$end was $$29,000,$ and her share of ordinary loss was $$46,600.$ On January $1,2025,$ Ms$.$ Pope sold her interest to another partner for $$3,700$ cash.

Required:

How much of her share of PPY$$s loss can Ms$.$ Pope deduct on her $2024$ return?

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

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