@dsoile Thanks for the response!
I've received conflicting information about Company B depending on who I ask. The S Corp owns a rock quarry. I've spoken with the company in charge of mining the quarry (not listed anywhere on the K-1) and they said Company B is not owned by the S Corp. I believe they said Company B rents the land from the S Corp and pays royalties to the S Corp. However, when I spoke with the accountant that prepared the K-1, they said the S Corp does own Company B. My cousin (the S Corp treasurer) said they're inclined to believe the company that does the mining since they're on the ground.
Regardless, there is not a way in TurboTax to split the Section 199A information so that it's entered in the same way it's presented on the K-1 (as two separate activities). As I mentioned, in TurboTax it states:
"IMPORTANT: If the statement reports information from more than one trade or business, please enter each activity on a separate K-1 entry worksheet."
That is why I was bringing up entering in more than one K-1 in TurboTax even though I only have a single K-1. I also mentioned that this advice has been given in other forum posts. However, I'm just not sure what the best way to do this is (see options 1 and 2 in my original post).
