The terms of a testamentary trust required that property be held by the trust for the benefit of individual A, the surviving spouse, and then transferred to children on As death. Income earned by the trust must be paid annually to A. Upon As death, the trust owned capital property valued at $100,000 that originally cost $40,000. The trust will have taxable income of $30,000 from the deemed disposition of the capital property. Is this statement true or false?