on line the K-1 is $736 which shows up on shedule b but then there is line 14a on the K-1 that exempts $720 of the $736; therefore, only 16 should show on line 2b of the 1040 and the whole 736 is showing up. Your right the 720 shows on line 2a it is just that I don't see where it subtracts the $720. On the schedule b there is $1128 total ($268, $124 & $736). Also it did not carry to the MI State 1040. Do you think I should enter the k-1 in 2 parts and see if that makes a difference?