Dylan, Luke, and Hannah Form a Partnership

question 66

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 the partnership's basis in the building it received from Hannah?

• A)$35,000
• B)$60,000
• C)$65,000
• D)$100,000

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Definitions:

Crawling

The act of moving forward on hands and knees or by dragging the body close to the ground, typically a developmental milestone in infants.

Creeping

The slow, gradual movement or development of something, often unnoticed until it has become significant.

Locomotive Development

The progression of physical abilities in infants and young children, enabling them to move from one place to another, such as crawling, walking, and running.

Ulnar Grasp

An early motor skill in infants where objects are grasped with the entire hand, using the palm and the ulnar side (near the little finger).