:::::::asap

You are a senlor tax accountant in the firm, Emest \& Rainhouse. Joe, a new Junlor accountant, has just comploted an interviow with a new client Harry, who is a ganeral partner of Widget Unlimitted. Harry is seeking to have Emest \& Ralnhouse prepare Widget Unilmited's Partnership Tax Return. Joe has never prepared a Partnership Tax Return and seeks your help in doing so. Adcitionally, there are a couple of questions Harry asks that Joe needs your assistance in answering. You are to read the scenario below and then follow the Instructions. Scenno Henry, Hunter, and Harry fomed a partnership (Widget Unlimited) on January 1, 2020. Henry and Hunter each contributed \$200,000 and Harry transferred a bullding he had purchased two years earlier to the partnershlp. The buliding had a tax basis of $150,000 and was appraised at $300,000. The bullding was also encumbered with a $100,000 mortgage. The partners plan to use the building to manufacture, distribute, and sell green and purple widgets. Hamy will work full time operating the business for which he will receive guaranteed payments (not included in expenses) of $5,000 per month. Henry and Hunter will devote less than twelve days a year to the business. At the end of 2020, Widgets Unlimited had made $6,000 in mortgage principal payments. The partnership agreement specifes that Henry, Hunter, and Harry will share in incomeloss in the ratio of 3:3:4. For the first year of operation, the partnership records disclose the following information