Dylan, Luke, and Hannah Form a Partnership

question 23

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.How much gain does Hannah recognize?

• A)$0
• B)$1,000
• C)$5,000
• D)$65,000

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Definitions:

Two-Way Analysis

A statistical test used to examine the influence of two different independent variables on one dependent variable.

Factorial ANOVA

An analysis of variance that is used when an experiment or study has two or more independent variables.

Factorial Analysis

A statistical approach that explains the variance among observed, correlated variables by a smaller set of unobservable variables known as factors.

Well-Being

A comprehensive term for the condition of an individual or group, encompassing physical, psychological, and social aspects.