Let's look at both the facts and the spreadsheet from Problem 48. Consider the results if the partnership's revenues were $100,000 instead of $150,000.
a. What happens if you update the revenues line on your spreadsheet? Are your new amounts correct for the Form 1065/Schedule K information, Schedule K-1 information, and partners' bases? Why or why not?
b. Use the ordering rules of Exhibit 10.2 (and the loss limitation rules), and calculate Kayla's basis in her partnership interest at the end of the year. Based on this calculation, what does Kayla report on her tax return?
c. Make the same calculation for Lisa. What will Lisa report on her tax return?
d. Do the amounts you calculated in part (b) and part (c) equal the amounts shown on your spreadsheet? Why or why not?