The kl partnership is owned equally by kayla and lisa

Assignment Help Taxation

Reference no: EM13505496

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

Questions Cloud

How would you allocate the cost of the trip : You and two friends drive your car to Texas for spring break. A third friend asks if you can drop her off in Oklahoma. How would you allocate the cost of the trip among the four of you?

An individual with a disability : Consider the notion that an individual with a disability may feel primarily defined by his or her ability status. Also, consider the historical treatment of people with disabilities and the number of individuals who were euthanized and sterili..

What factors can cause costs to change : What factors can cause costs to change? Which of these factors are subject to cost containment and which are not? What creates the difference in controllability?

State what is the equilibrium constant kc : Determine the equilibrium concentration of A, B, and C at 525 K. What is the equilibrium constant Kc

The kl partnership is owned equally by kayla and lisa : The KL Partnership is owned equally by Kayla and Lisa

Why might managers seeking a monthly bonus on attaining : Why might managers seeking a monthly bonus on attaining a target operating income prefer the sales method of accounting for byproducts rather than the production method?

Why has cost management risen to such a high level : In the present highly competitive environment, why has cost management risen to such a high level of concern whereas price management has declined in importance?

Find with what speed did it leave the kickers foot : A football is kicked straight up into the air; it hits the ground 3.4 later. With what speed did it leave the kicker's foot

State a balanced equation for the acid-catalyzed hydrolysis : Write the structure for the pyrrolidine enamine and for the imine of cyclohexane. Write a balanced equation for the acid-catalyzed hydrolysis of each of these compounds.

User Account

All Pages