Dylan, Luke, and Hannah Form a Partnership

question 14

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 Luke's basis in his partnership interest?

• A)$35,000
• B)$38,000
• C)$56,000
• D)$59,000

---

Definitions:

Experimenter Expectancies

The influence that the researcher's expectations can have on the outcome of a study, potentially biasing results if not properly controlled.

Noncompliance

A failure or refusal to act in accordance with a set rule, request, or command.

Experimental Procedures

The systematic and scientific methods used in experiments to test hypotheses and establish causal relationships.

Research Allegiance

The tendency of researchers to favor outcomes that align with their own theoretical preferences or biases, potentially influencing the results of their studies.