Shane purchased a 25% partnership interest in ML, LLP on January 1 of the current year.  The partnership has a section 754 election in place.  ML owns depreciable equipment that it originally purchased for $200,000 at the beginning of last year.   The equipment is 5-year property (straight-line) with 4 years remaining on its useful life. Shane is allocated a section 743(b) adjustment of $25,000 with respect to the equipment.  What is Shane’s total depreciation deduction with respect to the equipment in year 2 on his K-1?

Liam & Reagan Company is a partnership that has two partners, Liam and Reagan. At the beginning of the year, Liam's basis in the partnership is $40,000 while Reagan's basis is $70,000. During the year, Liam transfers a building to the partnership. The building has an adjusted basis to Liam of $350,000 and a fair market value of $450,000. There is a recourse mortgage attached to the building of $250,000 that the partnership assumes. Liam's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Reagan's profit-sharing ratio is 60% and her loss sharing ratio is 70%. What is Reagan's basis after this transaction?