C, D, and E formed a partnership in 20X1. C contributed real estate that he held for investment with a basis of $24,000 and a fair market value of $30,000 for a 30% interest in capital and profits. The partnership used the real estate in its operations. D contributed cash of $25,000 for a 25% interest in capital and profits. E contributed machinery with a basis of $55,000. The machinery was purchased by E three years ago and E uses the straight-line method to depreciate the asset. At the time of contribution, the asset had 4 full years remaining in its useful life. Determine the allocation for depreciation each year. Assume that the partnership sells the real estate in 20X3 for $32,000. Determine how the gain or loss will be allocated among the partners.