K-1 Did you materially participate

I worked at a company that was owned by a Private Equity firm, who subsequently sold our company. As part of that sale I realized a gain due to the management incentive plan, and received a K-1 and K-3 (form 1065). Since I have never been part of this kind of sale before, this is all new to me.

There are a few things I'm confused by.

1. Turbotax asks if I materially participated in the partnership's business activities. Since I was employed at the entity which was sold, I assume that yes I did. Is this wrong?

2. Entering foreign gross income from K-3, part II, Section 1, line 24. I have no entries for a-e but do have "(f) Sourced by partner" and "(g) Total" though all are for the U.S. (no foreign income). Turbotax labels these as "Foreign Gross Income" though in my case the K-3 specifically lists it as "US". Does this matter?

3.) In the "Enter deduction information" section of Turbotax, it instructs "On your schedule K-3, go to Part II, Section1, Line 54". There is no line 54 in section 1. Section 1 stops at line 24. Section 2 has line 54. Is this simply an error in the program? Should it say "Part II Section 2"?

4.) Smartcheck says there are federal errors and asks for a form 6252. I was not issued one and assume that I've made an error entering the K-1 and/or K-3 information since I am unfamiliar with it. Any thoughts about this part will be welcome since I thought I'd gotten close to finishing!

Thanks!