Ernst and Young form the equal EY partnership.  Ernst contri…

Ernst and Young form the equal EY partnership.  Ernst contributes property (FMV = $150,000, basis = $60,000) and Young contributes $150,000 cash.  The property is depreciated straight line over a 10 year life for both book and tax purposes.  The partnership also has other property (FMV = $100,000, basis = $100,000) that is depreciated straight line over 5 years.  Under Code Sec. 704(c), how much of the tax depreciation of the contributed property in the first year will Young get?  Assuming a curative allocation is made, how much will it be?

On December 1 of year 1, Casey buys Nathan’s 1/3 interest in…

On December 1 of year 1, Casey buys Nathan’s 1/3 interest in COB Partnership. COB is a calendar-year partnership with total expenses of $360,000 for the year, $240,000 of which were accrued prior to December 1st. The remaining $120,000 of expense were incurred in December. The partnership’s total income is $360,000, which was earned equally over the taxable year. How much income and expense would Casey be allocated under the interim closing method?