Partners A, B, C and D each contribute $50,000 for 25% of the ABCD partnership. The partners all meet the three tests for economic effect, and the four tests for allocation of nonrecourse deductions are met as well. They use the $200,000 cash and $1,800,000 of nonrecourse financing to buy a building that is depreciable over 20 years on a straight line basis. Income equals expenses in all years, except for depreciation, which is allocated completely to D. 1 How much of the depreciation deduction in each year (from year 1 to year 3) will D be allowed to take? Clearly explain why this depreciation allocated to D. 2. Assume the same facts as the prior problem. If the building is sold at the end of year three for $3,000,000, how much gain would each partner have to recognize