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:

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

Payment to Mercy Hospital for Kayla's medical expenses $ 12,000

Please provide calculations and reasoning for filling out each line on a 1065 Form. including the completed Schedule M-1 and M-2