Jaylan and Casper are equal partners in J&C Raccoon Hats. Jaylan contributed $12,000 and Casper contributed inventory with a FMV of $12,000 and an adjusted basis of $10,000. Which of the following is TRUE?

Jaylan's basis in the partnership is $12,000 and Casper's is $10,000.

Jaylan and Casper each have a basis in the partnership of $12,000.

Jaylan will have a larger share of the profits than Casper.

Casper will have a larger share of the profits than Jaylan.