A non-depreciable capital asset with a fair market value (FMV) of $200,000 and an adjusted cost base (ACB) of $120,000 is transferred to a corporation pursuant to ITA 85(1), with the elected value being $120,000. The transferor receives cash consideration of $100,000 and shares with a legal stated capital of $100,000. ITA 85(2.1) indicates that the reduction in paid up capital (PUC) of the shares would be

A.

$120,000.

B.

$100,000.

C.

$20,000.

D.

$80,000.