Jack transfer property worth $250,000 (basis of $240,000) to seafoam corporation(a calendar year C-corporation). In return, he receives 80% of its stock( worth $230,000) and a long term note, executed by seafoam made payable to Jack (worth $20,000). Jack will recognize a gain of $20,000 on the transfer since the note is considered boot.

A. True

B. False