Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $121,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $59,000 and was appraised at $180,000. The land was also encumbered with a $59,000 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 $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:

Sales revenue	$ 490,000
Cost of goods sold	460,000
Operating expenses	70,000
Long-term capital gains	2,400
1231 gains	600
Charitable contributions	300
Municipal bond interest	300
Salary paid as a guaranteed payment to Deanne (not included in expenses)	3,000

1. b. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnerships first year of operations.

2. 

Req A Req B Reg D List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Negative amounts should be entered with a minus sign. Leave no answer blank. Enter zero if applicable.) Show less Description Total Keon Aaron Deanne Ordinary business income (loss) $ (43,000) $ (14,333) $ (14,333) $ (14,333) Separately stated items on Schedule K-1: Municipal bond interest $ 300 $ 100 $ 100 $ 100 Mortgage reduction (deemed cash distribution) $ (2,400) $ $ (2,400) 3,000 Guaranteed payment 0 $ 0 $ Long-term capital gains 800 $ $ 800 Charitable contributions (100) $ $ (100) Section 1231 gains 200 $ 200 $ 200 Self-employment income (loss) $ $ (11,333) $ 0 $ $ $ $ $ $ $ $ (7,200) 3,000 2,400 (300) 600 (40,000) 0 0 69 69 $ $ $ $ $ 14,333 0 0 $ $ (2,400) 800 (100) 14,333 0 0 $ 0