If you are reporting your income on Schedule C, include the full amount of the $1200 as income on your return since the 1099-MISC was issued to you. Then claim $800 under the Contract Labor category as an expense.
To be completely accurate, you can give the other two members of the trio a Form 1099-MISC for their portion. Since the amount is less than $600, you are not required to do so.
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