How would your answers in Problem 45 change if partnership revenues were $100,000 instead of $150,000? Data

Question:

How would your answers in Problem 45 change if partnership revenues were $100,000 instead of $150,000?

Data From Problem 45:

The KL Partnership is owned equally by Kayla and Lisa. Kayla’s basis is $20,000 at the beginning of the tax year. Lisa’s basis is $16,000 at the beginning of the year. Assume that 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 Cost of sales Distribution to Lisa Depreciation expense Utilities Rent expense Long-term

a. Determine the ordinary partnership income and separately stated items for the partnership.
b. Calculate Kayla’s basis in her partnership interest at the end of the tax year. What items should Kayla report on her Federal income tax return?
c. Calculate Lisa’s basis in her partnership interest at the end of the tax year. What items should Lisa report on her Federal income tax return?

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