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. 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

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?