Josie and Kitty want to set up a spa for aging rock stars to rehab in the Arizona desert.They form Sunshine Daydream, LLC.Josie contributes land near Yuma, AZ with a fair market value of $100,000 with an adjusted basis in her hands of $50,000.Kitty contributes $100,000 cash.They decide this concept is great and buy more land outside of Flagstaff, AZ for the full amount of Kitty's contributed cash.In year 2, they realize that aging rock stars don't really want to rehab and sell the Yuma property for $80,000.They also sell the Flagstaff property for $125,000.

How to allocating the gain/(loss) on sale of the property using traditional allocation method, traditional with curative allocation method, or remedial method.