Grackle Corporation (E & P of $600,000) Distributes Cash of $200,000

True/False

Grackle Corporation (E & P of $600,000) distributes cash of $200,000 and land (fair market value of $400,000; basis of $250,000) to a shareholder in a qualifying stock redemption. The land distributed is subject to a mortgage of
$460,000. Grackle will recognize a gain of $210,000 as a result of the distribution.