Mark and Jeremy form an LLC. Mark is the manager and contributes $50,000 and Jeremy contributes $50,000. The LLC borrows $900,000 on a nonrecourse basis, and the members agree to share profits and losses equally. The LLC uses its $1,000,000 to buy a building. a) What is the outside basis of each member? b) Assume the LLC specially allocates all the depreciation deductions to Mark. Assuming the allocations are valid under the Sec 704(b) regulations, compute the members shares of liability when the book value of the building has been reduced to $600,000 from depreciation deductions.