A, B, and C form the ABC general partnership, agreeing to be equal partners. A...
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A, B, and C form the ABC general partnership, agreeing to be equal partners. A contributes cash of $150,000. B contributes A/R with basis of zero and FMV $150,000. C contributes a building with basis of $50,000 and FMV of $150,000. This property is depreciable using the SL method and has 5 years left of depreciation for tax purposes but is determined to have 10 years remaining of useful life (hint: the difference in years will be important for the remedial method). Please determine the allocation of depreciation expense under (1) the traditional method, (2) the traditional method with curative allocations, and (3) the remedial method. For the traditional method with curative allocations, please assume that ABC took As cash contribution and purchased an asset that is being depreciated over five years using straight line depreciation.
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