1120S K-1 with multiple activities in Section 199A

I have a K-1 (1120S) that has the following filled in:

• Box 1 (ordinary business loss)
• Box 4 (interest income)
• Box 5a (ordinary dividends)
• Box 5b (qualified dividends)
• Box 6 (royalties)
• Box 8a (net long-term capital loss)
• Box 12 (other deductions) - Code ZZ with a statement of "depletion percentage"
• Box 16 (items affecting shareholder basis) - Code D (distributions)
• Box 17 (other information)
  • Code A (investiment income)
  • Code V (section 199A information)
  • Code AC (gross receipts) - statement only includes gross receipts from previous 3 years (not current year), which seems odd

There's also a Shareholder Rental Report with a different entity name (let's call it Company B) from the S Corp  listed with the royalty amount from Box 6.

In the Section 199A Information statement, there are 2 activities listed along with the following amounts:

• Column A: Page 1 Activity
  • Ordinary business loss from Box 1
• Column B: Company B
  • Royalty income from Box 6
  • Other deductions from Box 12

At first I created a single K-1 in TurboTax and entered all this information in Section 199A essentially as a single activity. However, I noticed the following statement in TurboTax for Section D1 (Qualified Business Income Deduction - Statement A Information):

"IMPORTANT: If the statement reports information from more than one trade or business, please enter each activity on a separate K-1 entry worksheet."

I have also found other forum posts discussing how when there are multiple activities, the single K-1 should be split into multiple K-1s in TurboTax and the appropiate information for each activity reported on the appropriate K-1 (such as this one).

Now to my question which I have not been able to find in the other related forum posts. If I am supposed to split my single K-1 into multiple K-1s, what information do I enter for entity?

1. Do I have multiple K-1s with my S Corp information, including name, address, EIN, shareholder percentage? Then on the K-1 that has the Section 199A values for Company B, enter the name of Company B in the linked QBI component?
2. Or do I have one K-1 with my S Corp information and the other K-1 with the name of Company B as the K-1 name, but with the S Corp's name, address, and EIN (the K-1 does not have a EIN listed for Company B)? Do I include the shareholder percentage on the Company B K-1? Just like the above option, the Company B K-1 would have a linked QBI component with the name of Company B.

The end result of both options is that on Form 8995, both the S Corp and Company B are listed with their appropriate QBI income/loss. However, in both cases Company B's EIN is the S Corp's since the K-1 doesn't list a separate EIN for Company B.

I think the only difference in the output of the two options is what is listed on Schedule E. With option 1, the S Corp is listed twice in Part II (but with the appropriate values). With option 2, the S Corp and Company B are both listed (again with appropriate values). However, again, the S Corp EIN is listed for both in both cases.

I'm not sure if there are any other implications to option 1 or 2, so I'd really like to know which is better (or something else entirely). Thanks!

On a side note, it'd be really helpful if TurboTax just supported entering multiple activities in the Section 199A information.