How did you enter the $2,318 from the K-1? I use the K-1 Entry Worksheet for partnerships.

IE, I have $100 ordinary income on page 1. I entered a K-1 for $2,318 real estate income. 

On M-1, the total book income is $2,418. I have one corp partner and 2 individuals. On page 5 line 2b I have $806 corp and $1,612 individuals.

Don't forget, you also need entries on the Balance Sheet, assuming you use it. The original purchase of the investment, PLUS any income or LESS loss pass-throughs ($2,318 this year) less distributions if any.