3)Lambda Corporation sold an old warehouse on the waterfront in Toronto on August 15, 2011. The City of Toronto purchased the property and intends to demolish the building and use the land as part of a waterfront bicycle trail. The total proceeds paid to Lambda Corporation were $420,000. The adjusted cost base of the land is $80,000. The capital cost of the building was $90,000 and the UCC of the building was $12,000. Lambda Corporation has allocated all of the proceeds to the land. What will be the impact on Division B income for Lambda Corporation for the above sale?

(a)$170,000

(b)$110,000

(c)$164,000

(d)$125,000