Had to walk through this again slowly...short version, as I suspected, is that Lacerte had this right all along...the adjustments shown on the K-1 detail are correct...the program is eliminating the Sec 754 depreciation that was deducted on the Form 8825, and then adding it back for the partner with the 754 adj allocated...they have it right...it just looks a little weird...all of the numbers fit!