Problem:
Doter Accounting Group (DAG), a calendar-year partnership, has three equal general partners, David, Alan, and George. On January 1, Year 9, David sold his partnership interest to Doug for $200,000. The total adjusted basis (inside basis) of the partnership's assets on the date of the sale was $450,000, and the fair market value (FMV) was $600,000. DAG has a valid Section 754 election in place to adjust the basis of partnership assets in the event of a sale or exchange. What is the amount of the Section 743(b) basis adjustment for the partnership assets that is allocated to the new partner, Doug?