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:

Middle Adulthood

A stage in human development generally considered to range from about 40 to 65 years of age, characterized by increased personal and professional responsibilities and awareness of aging.

Generativity Versus Stagnation

A stage in Erik Erikson's theory of psychosocial development where middle-aged adults face the challenge of contributing to society and helping the next generation, versus becoming self-absorbed and unproductive.

Erikson's Life Stages

A theory of psychological development detailing eight stages from infancy to adulthood, each characterized by a specific crisis.

Preserving Identity

The effort to maintain a stable sense of self and personal uniqueness despite changing circumstances or external pressures.