The HK Partnership is owned equally by Harry and Kendra. Larrys outside basis is $50,000 at the beginning of the tax year. Kendra's outside basis is $30,000 at the beginning of the year. Assume partnership debt did not change from the beginning to the end of the tax year. LK reported the following income and expenses for the current tax year: Sales revenue $200,000 Cost of sales 110,000 Distribution to Larry 25,000 Depreciation expense 30,000 Charitable contributions 10,000 Rent expense 15,000 Dividend income 12,000

a) Calculate partnership ordinary taxable income or loss for the year.

b) Identify items of separately stated partnership income or deduction items for the year,