True or False

A C corporation distributes securities with a basis of $30,000 and a value of $60,000 to its three shareholders who have a total basis of $90,000 in their stock. The distribution is not a redemption of the shareholders stock nor a payment made in liquidation. The corporation recognizes gain on the distribution and is taxed. The shareholders are taxed on dividend income for the value of the securities. The shareholders stock bases are unchanged.