The kl partnership is owned equally by kayla and lisa

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47. The KL Partnership is owned equally by Kayla and Lisa. Kayla's basis is $20,000 at the beginning of the tax year. Lisa's basis is $16,000 at the beginning of the year. KL reported the following income and expenses for the current tax year:
Sales revenue $150,000
Cost of sales 80,000
Distribution to Lisa 15,000
Depreciation expense 20,000
Utilities 14,000
Rent expense 18,000
Long-term capital gain 6,000
Payments to Mercy Hospital for Kayla's medical expenses 12,000
a. Determine the ordinary partnership income and separately stated items for the partnership
b. Calculate Kayla's basis in her partnership interest at the end of the tax year. What items should Kayla report on her federal income tax return?
c. Calculate Lisa's basis in her partnership interest at the end of the tax year. What items should Lisa report on her Federal income tax return?

Reference no: EM13505496

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