7. Gordon Carter owns 80% of the common shares of Jetco Ltd. Gordon's shares have an adjusted cost base (ACB) of $1,200,000. The Jetco common shares have a total paid-up capital (PUC) of $2,600,000 and a total fair market value (FMV) of $2,800,000. Using the provisions of ITA 86, Gordon exchanged his shares for cash of $1,200,000 and preferred shares with a legal capital and FMV of $800,000. What is the PUC of Gordon's preferred shares