The Rite-Way Plumbing Co. began business three years ago as of March 1 of the current tax year in Sarasota. Its business address is 124 Division Lane, Sarasota, FL 33645. Its employer identification number is 69-3456789. Its principal business activity is plumbing installation and repair and its business code number is 238220. It files its income tax returns on the calendar-year basis. The business was formed as a limited partnership by two brothers, John Henry (SSN 555-55-5555) and James Henry (SSN 666-66-6666), who work full-time in the business, and their father Tom Henry (SSN 888-88-8888), the limited partner. The brothers each have a 25% interest in the income, loss, and capital of the business while their father owns a 50% interest in income, loss, and capital, but takes no active interest in the business other than as that of an investor. At the end of the current year, its operations showed cash gross receipts of $1,240,000 and the following cash expenditure items: Salaries and wages (excluding John and James) $378,000 Repairs and Maintenance 2,000 Rent 28,000 Taxes and Licenses 38,000 Advertising 3,000 Pension Plans (excluding John and James) 15,000 Health/Dental Insurance 16,000 Material Purchases 220,000 Truck Expense 45,000 Insurance (excluding health/dental) 65,000 Legal/Professional Fees 3,000 Office Expenses 6,000 Utilities/Telephone 8,000 Meals/Entertainment 4,000 Draw John 75,000 Draw James 60,000 Total Cash Expenditures $966,000 John and James each receive a guaranteed payment of $75,000 in addition to the payment of their health and dental insurance premiums, which were $3,000 each for the current year (included in the $16,000 total for health/dental insurance). The other insurance payments include the $1,500 premiums for $200,000 term life insurance policies each on John and James that name the partnership as beneficiary. Although the company maintains a certain level of plumbing supplies for its business inventory is not a material income producing factor; thus, material purchases are expenses. The partnership uses the cash method of accounting for revenue and expenses. The company purchased the following items for use solely in the business during the current year: a new truck (weighing over 6,000 pounds) bought on June 21 that cost $21,250; a new computer system bought on August 17 costing $3,200; additional new office furniture bought on December 4 costing $2,500. At the beginning of the current year, the company owned the following items that were all purchased the month the company began business. In that year, the company claimed only basic MACRS depreciation (that it, it elected no bonus depreciation or Section 179 expensing if available) for any of its truck, equipment, or furniture purchases: Asset Cost basis Trucks $78,000 Plumbing equipment (7 year property) 23,000 Office furniture 16,000 Computer system 4,000 On March 12, it sold one of its old trucks for $6,000 that had originally cost $17,000. It also was able to sell its old computer system on September 12 for $250. It donated two pieces of its old office furniture to Goodwill Industries. This furniture had cost $1,500 and had a current value of $600. REQUIRED Prepare Form 1065 for the Rite-Way Plumbing Co. along with the Schedule K-1s for each of the three partners and any other required forms. The partnership wants to maximize its cost recovery deductions for the current year for tax purposes