Frank, Greta, and Helen each have a one-third interest in the FGH Partnership. On December 31, 2014, the partnership reported the following balance sheet:

The partnership placed Asset 1 (seven-year property) in service in 2012 and Asset 2 (five-year property) in service in 2013. The partnership did not elect Sec. 179 expensing and elected out of bonus depreciation in both years. Accordingly, it computed the assets€™ adjusted bases at December 31, 2014 as follows:

On January 2, 2015, Helen sold her partnership interest to Hank for $190,000. At the time of sale, the partnership had a Sec. 754 optional basis election in effect but has not elected to use the remedial method for allocating partnership items.
Required: 
The partners have asked you to determine (1) the amount and character of Helen€™s gain or loss; (2) Hank€™s optional basis adjustment and its allocation to Asset 1 and Asset 2; and (3) the amount of depreciation allocated to Hank in 2015, including the effects of the optional basis adjustment. At a minimum, you should consult the following resources:
€¢ IRC Secs. 743 and 751
€¢ Reg. Sec. 1.743-1(j)
€¢ Reg. Sec. 1.755-1

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Partnership's Basis FMV Assets Cash $120,000 S120,000 Asset 1 262,380 360,000 Asset 2 Total $497,580 $570,000 Partners' Capital: Frank S165,860 S190,000 Greta 165,860 190,000 Helen 190.000 Total S497,580 5570,000 Asset 1 Asset 2 Cost $600,000 240,000 Depreciation 2012 $85,740 2013 146,940 $48,000 2014 104.940337620) 76800 124.800) Adjusted basis $262.380 $115.200