1. 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?

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

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

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

d. The first and third answers are both correct

2. Which of the following lists the series in ascending order (smallest first) of returns over the past 90+ years?

A. Small stocks, large stocks, government bonds

B. Small stocks, government bonds, large stocks

C. Large stocks, small stocks, government bonds

D. Large stocks, government bonds, small stocks

E. Government bonds, large stock, small stocks