Dylan, Luke, and Hannah Form a Partnership

question 60

Multiple Choice

Dylan, Luke, and Hannah form a partnership.Dylan contributes land with a fair market value of $25,000 (basis of $15,000) in exchange for a 25% interest.Luke contributes equipment with a $35,000 fair market value (basis of $38,000) in exchange for a 35% interest, and Hannah contributes a building with a $100,000 fair market value (basis = $35,000) and a mortgage of $60,000 (assumed by the partnership) in exchange for a 40% interest.What is Dylan's basis in his partnership interest?

• A)$15,000
• B)$25,000
• C)$30,000
• D)$60,000

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Definitions:

Utero

Latin term for "in the uterus," often used in medical and biological contexts to describe something occurring within the uterus.

Language

Is a system of communication that involves the use of words in a structured and conventional way, allowing individuals to express ideas, emotions, and thoughts.

Marijuana

A psychoactive drug derived from the Cannabis plant, used for medicinal or recreational purposes.

Cognitive Functioning

The mental processes involved in gaining knowledge and comprehension, including thinking, remembering, and problem-solving.