Individual X owns all of the shares of Xee Ltd., a Canadian-controlled private corporation holding investments in marketable securities. The Xee shares have a PUC of $100,000 and an ACB of $150,000. Individual Y owns all of the shares of Yee Ltd., a Canadian-controlled private corporation. Yee Plans to purchase all of the shares of Xee from X for $500,000, in exchange for cash of $150,000 and preferred shares of Yee of $350,000. X and Y are brothers. X and Y will file a joint election under section 85 of theIncome Tax Actin order to defer tax on the transaction. X will recognize a deemed dividend of $50,000 from the sale of shares to Yee. Is this statement true or false?