Dewey and Louie Agree to Combine Their Sole Proprietorships into One

question 61

Multiple Choice

Dewey and Louie agree to combine their sole proprietorships into one business.They will be equal partners in the Dewlou Diner.Dewey will contribute a building worth $100,000 (adjusted basis of $80,000) ,and $10,000 in cash.Louie will contribute inventory worth $80,000 (adjusted basis of $85,000) and $30,000 cash.What are Dewey and Louie's basis in the partnership?
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Dewey Louie

• A)$80,000 $85,000
• B)$90,000 $115,000
• C)$90,000 $110,000
• D)$110,000 $110,000

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Definitions:

Motor Starter

A device or system that controls the use of electrical power to equipment, especially motors, preventing damage by controlling the electrical power for starting the motor.

Maintained Contact

A switch mechanism that keeps or maintains its position (either on or off) until manually changed or actuated.

Momentary Contact

Momentary contact refers to an electrical switch or relay contact that only completes the circuit while being physically engaged or pressed.

Three-Wire

A wiring configuration typically used in electrical circuits, incorporating a live wire, a neutral wire, and a ground wire for safety.