Net earnings (loss) from self-employment ...... 14a 14a Gross farming or fishing income .... Employ Self- ment 14b Gross nonfarm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c Low-income housing credit (section 42()(5)).. 15a 15a Low-income housing credit (other) ........ 15b Credits 15c c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) d Other rental real estate credits (see instructions) Type --- 15d e Other rental credits (see instructions) Type -- 15e f Other credits (see instructions) Type 15f Tax-exempt interest income ........ ..... 18a 18a Other tax-exempt income ......... 18b Nondeductible expenses ....... 18c Distributions of cash and marketable securities .... IDULIULIS UL Casil allu iliai KelaviE SECUTILICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a 19a Distributions of other property ....... 19b Investment income .... 20a 20a Investment expenses ....... 20b Other items and amounts (attach statement).... Form 1065 (2017) Form 1065 (2017) KL Partnership Page 4 Schedule Partners' Distributive Share Items Total amount N 1 Ordinary business income (loss) (page 1, line 22)............. 2 Net rental real estate income (loss) (attach Form 8825).. 3a Other gross rental income (loss) ................. b Expenses from other rental activities (attach statement) ... 3b c Other net rental income (loss). Subtract line 3b from line 3a ........ 4 Guaranteed payments ........... 5 Interest income ................... Income (Loss) ..... 6 Dividends: a Ordinary dividends ......... b Qualified dividends ................. 6b 7 Royalties ......... 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065))......... 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) ....... b Collectibles (28%) gain (loss). .... 9b c Unrecaptured section 1250 gain (attach statement) ...... 9c 10 Net section 1231 gain (loss) (attach Form 4797).......... 11 Other income (loss) (see instructions) Type 12 Section 179 deduction (attach Form 4562)..... 10 11 12 ions 13a Contributions ........................................................ 13a The KL Partnership is owned equally by Kayla and Lisa. At the beginning of the year, Kayla's basis is $20,000 and Lisa's basis is $16,000. Partnership debt did not change from the beginning to the end of the tax year. KL reported the following income and expenses for the current tax year. Assume total assets are $680,400. Sales revenue $150,000 80,000 Cost of sales Distribution to Lisa 15,000 Depreciation expense Utilities Rent expense 20,000 14,000 18,000 6,000 12,000 Long-term capital gain Payment to Mercy Hospital for Kayla's medical expenses a. Complete whether the following items are reported on Form 1065, page 1 or on Form 1065, Page 4, Schedule K. Sales revenue Form 1065, page 1 Cost of sales Form 1065, page 1 Distribution to Lisa Form 1065, Page 4, Schedule K Depreciation expense Form 1065, page 1 Utilities Form 1065, page 1 Rent expense Form 1065, page 1 Long-term capital gain Form 1065, Page 4, Schedule K How much is the partnership's ordinary income on page 1? $ 18,000 What amount is shown on lines 1, 9a and 19(a) on Schedule K? Line 1: $ Line 9a: $ Line 19(a): $
