TI L es 16.000. Partner ear. KL reported 1. LO.7, 8,9 The KL Partnership is owned equally by kayla and Lisa. At the ben of the year, Kayla's basis is $20,000 and Lisa's basis is $16.000 ship debt did not change from the beginning to the end of the tax year. KL te the following income and expenses for the current tax year. $150,000 Sales revenue 80,000 Cost of sales 15,000 Distribution to Lisa 20,000 Depreciation expense 14,000 Utilities 18,000 Rent expense 6,000 Long-term capital gain Payment to Mercy Hospital for Kayla's medical expenses 12,000 Prepare a Microsoft Excel spreadsheet that could be used in a CPA firm to accumulate KL's information that would be reported on Form 1065, page 1 (Ordinary business income (loss) and page 4 (Schedule K). Include calcula. tions and subtotals to ensure the spreadsheet will automatically update if the information changes. How much is the partnership's ordinary income on page 1? What information is shown on Schedule K? b. Use the information in part (a) to prepare Form 1065, pages 1 and 4 (Schedule ) for the KL Partnership. On page 1, omit items A to J at the top if the facts do not provide that information. For Schedule K, line 14, assume both partners are active in the partnership. Add columns to your spreadsheet to allocate amounts to Kayla and Lisa. (For this requirement, disregard the income from self-employment and information related to the qualified business income deduction.) Show the partners an cation percentages at the top of their columns, and use those percentage formulas to allocate any separately stated items that should be allocated. that some items are directly assigned to a partner.) What information will be shown on Kavla's and lisa's Schedules K-1, Fan What items will Kayla and Lisa report on their Federal income tax retum d. Expand your spreadsheet. Add rows for beginning basis and ending bas Kayla's and Lisa's columns, and calculate their ending basis in the pan interests. How do you make this calculation? What is each partner's basi partnership interest at the end of the tax year? LO.7.8.9.12 Let's look at hol c. he tax returns ding basis below the partnership thers basis in her