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1. Stephen and Baily form an equal partnership. Stephen makes a cash contribution of $60,000 and a property contribution (adjusted basis of $120,000; fair market

1. Stephen and Baily form an equal partnership. Stephen makes a cash contribution of $60,000 and a property contribution (adjusted basis of $120,000; fair market value of $130,000) in exchange for her interest in the partnership. Baily contributes property (adjusted basis of $11,000; fair market value of $250,000) in exchange for his partnership interest. What is Stephen and Baileys basis in the new partnership?

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