This is where it is confusing. 

So $90.1k in income on line 1 of the K-1, $64k in basis for 2020 which becomes the PYA, so then even though the client has $187k total carryover losses from prior years, they would then report $26k in income for 2020?

$90k on K-1 line 1 less $64k in PYA losses =  $26k income for 2020.  

What seems strange (and where I get confused) is why they would report any income in 2020 since they had so much in prior year losses.