Ture or False:

Three individuals form Skylark Corporation with the following contributions (i) Cliff, cash of $50,000 for 10 shares; (ii) Brad, land (fair market value of $20,000) for 4 shares; and (iii) Ron, cattle (fair market value of $5,000) for 1 share and services (fair market value of $40,000) for 8 shares. Section 351 will not apply in this situation because the control requirement has not been satisfied.