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The KL Partnership is owned equally by Kayla and Lisa. At the beginning of the year, Kayla's tax basis in her KL interest is
The KL Partnership is owned equally by Kayla and Lisa. At the beginning of the year, Kayla's tax basis in her KL interest is $20,000 and Lisa's tax 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 Cost of sales Distribution to Lisa Depreciation expense Utilities Rent expense 80,000 15,000 20,000 14,000 18,000 Long-term capital gain 6,000 Payment to Mercy Hospital for Kayla's medical expenses 12,000 a. Complete whether the following items are reported on Form 1065, page 1 or on Form 1065, Page 4, Schedule K. Sales revenue Cost of sales Distribution to Lisa Depreciation expense Utilities Rent expense Long-term capital gain Payment to Mercy Hospital for Kayla's medical expenses
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