In UK with a MOT (annual inspection) that bike would fetch over £2000 (over $3000 to you)!!
Its got all the early K0 parts that i can see and might have the very early single piece scraper rings and not so good velve stem seals(hence the smoke), I cant quite make out the frame(vin) number and i would love to know the date and number from the plate(plus engine if poss) to put into my list for reference. I could then also tell you what mods might need doing. PM me with details if you can.
Cheers
Bryan
Definite K0 bike Bryan, has the old style seat lock for one. Build date looks to be 8/71 with frame number 1031653 from what I can see. Looks to me to be a decent buy, engine could just be smoking due to being fired up after standing for so long and the rings having to scrape off some surface rust, may only need a re-ring. I'd buy that bike just for the colour, got a NOS Jade Green side panel in a shop clearance and whilst the UK never got Jade Green I always fancied doing a restoration in that colour.
As Bryan says, in the UK that bike would fetch a minimum of £1500 and more likely above that price, a really good restoration can fetch over £3500 in the UK, be a real shame to break a nice bike like that, all you really need is there for a good start. Buy it.