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:

Chance

The occurrence of events without apparent cause, or the unpredictable and uncontrollable aspect of happenings.

Control

In experimental research, the practice of limiting the influence of confounding variables to determine the effect of the independent variable on the dependent variable more accurately.

Negative Reinforcement

A concept in behaviorism where the removal of an unpleasant stimulus strengthens a behavior.

Positive Reinforcement

A process in behavior analysis where a favorable outcome, event, or reward occurs after an action, thereby increasing the likelihood of that action being repeated in the future.