Wally Contributes Land (Adjusted Basis of $30,000;fair Market Value of $100,000)to

True/False

Wally contributes land (adjusted basis of $30,000;fair market value of $100,000)to a C corporation in a transaction which qualifies under § 351.The corporation subsequently sells the land for $120,000,recognizing a gain of $90,000 ($120,000 - $30,000).If Wally owns 30% of the stock,$76,000 [$70,000 + 30%($20,000)] of the $90,000 recognized gain is allocated to Wally.