Reference no: EM132462267
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
Point A. Using this information please place in format that is easy to understand with calucation formats to fill in for 1065. Include calculations and subtotals, to help ensure understandability
Question a. How much is the partnership's ordinary income ? What information is show on Schedule K?
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