Problem 10-39 (LO. 6, 7, 8, 9, 12) The KL Partnership is owned equally by Kayla and Lisa. At the beginning of the year, Kayla's tax basis in her KL interest is $20,000 and Lisa's tax 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. Assume total assets are $680,400. 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. Complete whether the following items are reported on Form 1065, page 1 or on Form 1065, Page 4, Schedule K. Sales revenue Form 1055: page 1 v 4 Cost of sales Form 1055: page 1 v 4 Distribution to Lisa Form 1065: Page 4: Schedule K v J Depreciation expense Form 1055: page 1 v 4 Utilities Form 1065: page 1 v v/ Rent expense Form 1055: page 1 v 4 Long-term capital gain Form 1055: page 1 v x Payment to Mercy Hospital for Kayla's medical Form 1065 Pa e 4 Schedule K v J expenses How much is the partnership's ordinary income on page 1? $ 150,000 x