Question $18$:

Deborah contributes Land with an Adjusted Basis of $$70,000$ and a Fair Market Value of $$100,000$ to Johnson Corporation, an S Corporation, in exchange for fifty percent $(50\%)$ of the stock of Johnson Corporation. Nanette contributes cash of $$100,000$ for the other fifty percent $(50\%)$ of the stock of Johnson Corporation. If Johnson Corporation later sells the Land for $$110,000,$$$35,000$ of the Gain from the sale of the Land is allocated to Deborah and $$5,000$ is allocated to Nanette.

A$.$ False

B$.$ True