Ken and Lars formed the equal KL Partnership during the current year; Ken contributes $$100,000$ in cash and Lars contributes land $($basis of $$60,000$ fair market value of $$40,000)$ and equipment $($basis of $$0,$ fair market value of $$60,000).$ Lars recognizes a $$40,000$ gain on the contribution and his basis in his partnership interest is $$100,000.$

True

False