Problem 7- Contributions of Depreciable Property. Built-in Losses. Suppose instead that Andys basis at the time of contribution was $120. How much depreciation would each partner be entitled to each year?

Reverse 704(c) Transactions. Several years ago Andy and Barney formed a partnership that acquired an apartment building to rent. Andy and Barney are equal partners. On the first day of the current year, when the building has a value of $120 and the partnership's adjusted tax basis in the building is $40, Andy and Barney admit Floyd as a one-third partner in exchange for a $60 cash contribution.

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