Where do I report royalties from a book writing partnership?

We are a husband-wife partnership. My wife writes books and I run the marketing and advertising campaigns. We sell the books on Amazon. Amazon pays us royalties for the books sold. We received form 1099-MISC from Amazon that lists the royalties in box 2. We need to file form 1065 and I am wondering where on this form I should enter the royalties? Should I enter them in the Income section, line 7 (Other Income) on page 1 of form 1065, or on Schedule K at line 7 (Royalties)? These are not passive royalties, we are actively involved in the book writing, publishing, and advertising process.