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

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Definitions:

Written Communication

The exchange of messages or information through written symbols, including letters, emails, reports, and social media posts.

Electronic Communication

The exchange of information using electronic devices and platforms, such as email, texting, and social media.

Nonverbal Communication

The process of conveying a message without the use of words, which includes gestures, facial expressions, body language, and other forms of unspoken communication.

High-Context

Communication style where most of the information is either in the physical context or internalized in the person, with little in the coded, explicit part of the message.