Ruth transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of its stock (worth $180,000) and a long-term note, executed by Goldfinch and made payable to Ruth (worth $20,000). Ruth will recognize no gain on the transfer

a. True
b. False
Indicate whether the statement is true or false

False
RATIONALE: The long-term obligation of Goldfinch Corporation constitutes boot. Thus, Ruth has boot in the amount of $20,000 and will recognize gain to that extent.