Amos Contributes Land with an Adjusted Basis of $70,000 and a Fair

True/False

Amos contributes land with an adjusted basis of $70,000 and a fair market value of $100,000 to White,Inc.,an S corporation,in exchange for 50% of the stock of White,Inc.Carol contributes cash of $100,000 for the other 50% of the stock.If White later sells the land for $110,000,$35,000 [$30,000 + 50%($10,000)] is allocated to Amos and $5,000 ($10,000 * 50%)is allocated to Carol.