Several Years Ago,the Clarence Partnership Purchased 1,000 Shares of ABCO

True/False

Several years ago,the Clarence Partnership purchased 1,000 shares of ABCO stock (publicly traded)for $20,000;the stock now has a fair market value of $50,000.If this stock is distributed to Charlie in liquidation of his 30% partnership interest,it is treated as a cash distribution to the extent of the $50,000 value of the stock.