Needing help filling out form 1065, can you please explain what information goes on what line in Form 1065 US Return of Partnership income? (instructions in bold, form attached) (Use the overview and scenario information below to help complete the form with what information is given.) Bonus if you can help answer the questions that follow after completing the form. This is all the information given for this assignment, it is complete. Forms attached.

Overview

You are a senior tax accountant in the firm, Ernest & Rainhouse. Joe, a new junior accountant, has just completed an interview with a new client Harry, who is a general partner of Widget Unlimited. Harry is seeking to have Ernest & Rainhouse prepare Widget Unlimited's Partnership Tax Return. Joe has never prepared a Partnership Tax Return and seeks your help in doing so. Additionally, 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.

Scenario

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:

Sales revenue	$820,000
Cost of goods sold	$735,000
Operating expenses	$65,000
Long-term capital gains	$3,300
~1231 gains	$1,500
Charitable contributions	$700
Political campaign donation	$500
Municipal bond interest	$450

Instructions

• Using the information provided, fill out Form 1065: U.S. Return of Partnership Income 2020 for Widgets Unlimited, preparing a Schedule K for Henry, Hunter, and Harry.- Form Attached needing help filling out the form with the information given in the overview and scenario above. Please be sure to list what number or line each piece of information should be on I am just stuck.
• BONUS POINTS BELOW_____>>> Write a4 page paper in which you do the following:
• Refer to the completed Form 1065 schedule of Henry, Hunter, and Harry's adjusted tax basis immediately after partnership formation and at the end of the first year of operation. Explain in what situations Henry, Hunter, and Harry would need to know the tax basis in their partnerships. Explain how often a partner's tax basis in his partnership needs to be adjusted. Justify your answer with relevant tax code citations.
• The tax code specifically enumerates several common separately stated items. Explain which items would be separately stated for partners Henry, Hunter, and Harry. Explain why each should be separately stated, citing relevant tax codes for at least three of your identified separately stated items.
• Assume Widgets Unlimited initial year of operation resulted in a loss. Explain in what order are the loss limitation rules applied to limit a partner's losses from partnerships.
• Explain how Henry, Hunter, and Harry would determine whether they are passive participants in Widgets Unlimited when applying the passive activity loss limitation rules.

Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity B Principal product or service C Business code number Income Deductions (see instructions for limitations) Tax and Payment 1882722 20 For calendar year 2022, or tax year beginning . U.S. Return of Partnership Income Sign Here Go to www.irs.gov/Form 1065 for instructions and the latest information. Name of partnership 19 Employee benefit programs Number, street, and room or suite no. If a P.O. box, see instructions. Type or Print City or town, state or province, country, and ZIP or foreign postal code G Check applicable boxes: (1) H Check accounting method: (1) Final return (3) Accrual (3) I Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year: J Check if Schedules C and M-3 are attached K Check if partnership: (1) Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information. 1a Gross receipts or sales. 1a 1b b Returns and allowances Initial return (2) Cash (2) Balance. Subtract line 1b from line 1a. 2 Cost of goods sold (attach Form 1125-A) 3 Gross profit. Subtract line 2 from line 1c. 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 7 Other income (loss) (attach statement) 8 Total income (loss). Combine lines 3 through 7 9 Salaries and wages (other than to partners) (less employment credits) Guaranteed payments to partners 10 11 Repairs and maintenance. 12 Bad debts. 13 Rent. 14 Taxes and licenses 15 Interest (see instructions) 16a Depreciation (if required, attach Form 4562). b Less depreciation reported on Form 1125-A and elsewhere on return Depletion (Do not deduct oil and gas depletion.) Retirement plans, etc. . 9 2022, ending Firm's name Firm's address Signature of partner or limited liability company member Print/Type preparer's name Name change Other (specify): Other deductions (attach statement) Total deductions. Add the amounts shown in the far right column for lines 9 through 20. Ordinary business income (loss). Subtract line 21 from line 8 Preparer's signature Paid Preparer Use Only For Paperwork Reduction Act Notice, see separate instructions. 23 Interest due under the look-back method-completed long-term contracts (attach Form 8697) . Interest due under the look-back method-income forecast method (attach Form 8866) 24 25 BBA AAR imputed underpayment (see instructions) 26 Other taxes (see instructions) 27 Total balance due. Add lines 23 through 26 28 29 30 16a 16b Date 20 $ (4) Address change (5) Date Cat. No. 11390Z D Employer identification number E Date business started F Total assets (see instructions) 1c 234SON 5 6 7 8 9DH23 10 11 12 13 14 15 16c 17 18 19 20 21 22 22227828 OMB No. 1545-0123 23 Payment (see instructions) Amount owed. If line 28 is smaller than line 27, enter amount owed. Overpayment. If line 28 is larger than line 27, enter overpayment Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge. 24 25 2022 26 29 30 Amended return May the IRS discuss this return with the preparer shown below? See instructions. Yes No Check self-employed Firm's EIN Phone no. PTIN Form 1065 (2022)