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Dewey and Morgan form a partnership where they are equal partners for all purposes. Morgan contributes depreciable property with a book value of $ 3
Dewey and Morgan form a partnership where they are equal partners for all purposes. Morgan contributes depreciable property with a book value of $ and a tax basis of $ at the time of contribution. The property had been depreciated straightline with no salvage value over years and the property has years left of its recovery period. Assume the partnership has $ of taxable ordinary income without including depreciation deductions. If the partnership uses the Traditional Method with Curative Allocations, how much taxable ordinary income will need to be allocated away from Dewey and towards Morgan as a curative allocation each year to compensate Dewey for the booktax disparity in depreciation deductions for Dewey?
Dewey and Morgan form a partnership where they are equal partners for all purposes. Morgan contributes depreciable property with a book value of $ and a tax basis of $ at the time of contribution. The property had been depreciated straightline with no salvage value over years and the property has years left of its recovery period. Assume the partnership has $ of taxable ordinary income without including depreciation deductions. If the partnership uses the Traditional Method with Curative Allocations, how much taxable ordinary income will need to be allocated away from Dewey and towards Morgan as a curative allocation each year to compensate Dewey for the booktax disparity in depreciation deductions for Dewey?
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