The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results:

Sales revenue	$70,000
Gain on sale of land ( 1231)	$8,000
Cost of goods sold	($38,000)
Depreciation - MACRS	($9,000)
Employee wages	($14,000)
Cash charitable contributions	($3,000)
Municipal bond interest	$2,000
Other expenses	($2,000)

Complete the Schedule M-1 reconciliation (for a Form 1065).