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Henry, Hunter, and Harry formed a partnership ( Widget Unlimited ) on January 1 , 2 0 2 0 . Henry and Hunter each contributed

Henry, Hunter, and Harry formed a partnership (Widget Unlimited) on January 1,2020. Henry and Hunter each contributed $200,000 and Harry transferred a building he had purchased two years earlier to the partnership. The building had a tax basis of $150,000 and was appraised at $300,000. The building was also encumbered with a $100,000 mortgage. The partners plan to use the building to manufacture, distribute, and sell green and purple widgets.Harry 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 specifies that Henry, Hunter, and Harry will share in income/loss in the ratio of 3:3:4.For the first year of operation, the partnership records
disclose the following information, using this information please create a 1065 form for widgets unlimited
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