Morgan and Kristen Formed an Equal Partnership on August 1

True/False

Morgan and Kristen formed an equal partnership on August 1 of the current year. Morgan contributed $60,000 cash and land with a basis of $18,000 and a fair market value of $40,000. Kristen contributed equipment with a basis of $42,000 and a value of $100,000. Kristen's tax basis in her interest is $42,000; Morgan's tax basis is $78,000.