Section 179 carryover

I established a general partnership in 2006 that had a loss for the year. The section 179 deduction was taken for some property, but the entire deduction had to be carried over due to income limitations. In early 2007, the partnership was incorporated into an S-corp and the section 179 property was exchanged (at market value) into the S-Corp for equity along with the remaining assets of the partnership. How will the section 179 property be accounted for in the termination of the partnership? What is the tax basis of the property? I want to verify that what my accountant is telling me is accurate. Also, the value of deductions made as 59(e)(2) expenditures were transferred to the s-corporation as "goodwill". Is this correct? Is there a better way to do this? Why was this way suggested? Thank you, Nick Wing