Question

At the beginning of year 1ms. 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 $18,000, and her share of ordinary loss was

Answer 1

Ms. Mushroom's share of the ordinary loss cannot be calculated without knowing the total investment.

Step-by-step explanation:

Ms. Mushroom purchased a 20 percent interest in the Fungi Partnership for $24,000 at the beginning of year 1. Her share of Fungi's debt at year-end was $18,000. To find her share of the ordinary loss, we need to calculate the proportion of the total investment that Ms. Mushroom made and multiply it by the partnership's ordinary loss.

Ms. Mushroom's share of the ordinary loss can be calculated using this formula:

Share of Ordinary Loss = Proportion of Investment x Partnership's Ordinary Loss

Proportion of Investment = Ms. Mushroom's investment / Total investment

Given that Ms. Mushroom's investment was $24,000 and the total investment was not provided, it is not possible to calculate her exact share of the ordinary loss without that information.