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

---

Definitions:

Prevents Ovulation

Describes a process or substance that stops the ovary from releasing an egg, used in various contraceptive methods to prevent pregnancy.

Inhibits Fertilization

Describes a process or substance that prevents the union of sperm and egg, subsequently blocking conception.

Uterine Wall

The muscular layer of the uterus where the embryo implants and grows during pregnancy.

Pregnant Woman

A female individual in the state of carrying a developing embryo or fetus within her uterus.