Molly owns a 30% interest in the capital and profits of the Silver Partnership. Immediately before she receives a proportionate nonliquidating distribution from Silver, the basis of her partnership interest is $60,000. The distribution consists of $20,000 in cash and land with a fair market value of $80,000. Silver's adjusted basis in the land immediately before the distribution is $70,000. As a result of the distribution, Molly recognizes a gain of $30,000 and her basis in the land is $70,000.

True or False?