On Day 1, each of ten individuals contributes an item of property (not money) in exchange for a 10% interest in a newly-formed partnership. No debt is involved. As a result and as of the end of Day 1 the partnership’s holding period for its various assets will be exactly the same as each contributing partner’s holding period had been in the asset s/he had contributed. Each partner’s holding period for her/his partnership interest will be exactly the same as the partnership’s holding period in the asset s/he had just contributed.

• Are these two statements true or false?