Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 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 $7,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:

Sales revenue	$	470,000
Cost of goods sold	$	410,000
Operating expenses	$	70,000
Long-term capital gains	$	2,400
1231 gains	$	900
Charitable contributions	$	300
Municipal bond interest	$	300
Salary paid as a guaranteed payment to Deanne (not included in expenses)	$	3,000
c. Using the information generated in answering parts (a) and (b), prepare Blue Bells page 1 and Schedule K to be included with its Form 1065 for its first year of operations, along with Schedule K-1 for Deanne. (Use 2019 tax rules regardless of year on tax form. Percentages should be rounded to two decimal places. Input all the values as positive numbers. Losses should be entered as negative numbers.) Can you please explain me qualified non resource financing ?

eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to uired information 19 Distributions If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here 12 Section 179 deduction Partner's share of profit, loss, and capital (see instructions): Beginning Ending 13 Other deductions 20 Other information Profit 33.33 % 33.33 % 100 Loss 33.33 % 33.33 % Capital 33.33 % 33.33 % Partner's share of liabilities: Beginning Ending Nonrecourse $ 0 $ 0 Qualified nonrecourse financing $ 7,000 $ 21,00014 Self-employment earnings (loss) (1,333) Recourse $ $ |A Partner's capital account analysis: Beginning capital account $ 110,000 Capital contributed during the year *See attached statement for additional information. For IRS Use Only Current year increase (decrease) $ (3,233) Withdrawals & distributions Ending capital account $ 106,767 Tax basis GAAP Section 704(b) book eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to uired information 19 Distributions If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here 12 Section 179 deduction Partner's share of profit, loss, and capital (see instructions): Beginning Ending 13 Other deductions 20 Other information Profit 33.33 % 33.33 % 100 Loss 33.33 % 33.33 % Capital 33.33 % 33.33 % Partner's share of liabilities: Beginning Ending Nonrecourse $ 0 $ 0 Qualified nonrecourse financing $ 7,000 $ 21,00014 Self-employment earnings (loss) (1,333) Recourse $ $ |A Partner's capital account analysis: Beginning capital account $ 110,000 Capital contributed during the year *See attached statement for additional information. For IRS Use Only Current year increase (decrease) $ (3,233) Withdrawals & distributions Ending capital account $ 106,767 Tax basis GAAP Section 704(b) book