Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $134,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $73,600 and was appraised at $204,000. The land was also encumbered with a $73,600 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $9,400 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:

Sales revenue	$ 506,000
Cost of goods sold	429,200
Operating expenses	89,200
Long-term capital gains	2,760
1231 gains	600
Charitable contributions	300
Municipal bond interest	300
Salary paid as a guaranteed payment to Deanne (not included in expenses)	3,000

c-1. Using the information generated in answering parts (a) and (b), prepare Blue Bell's page 1 and Schedule K to be included with its Form 1065 for its first year of operations.