Jack transfers equipment into X corporation on February $2$nd of $2022.$ The FMV of the equipment is $$30,000.$ The equipment was originally purchased for $$50,000$ and currently has an adjusted tax basis of $$10,000.$ Jack transfers the equipment in exchange for $10$ shares of X corporation stock. Assume the transaction qualified for non$-$recognition because section $351$ was satisfied. The equipment was a $7$ year asset under MACRS with $5$ years of depreciation remaining. Both taxpayers are calendar year. In determining the depreciation for $2022$ X corporation will receive $11$ months of depreciation attributable to the equipment.

True

False