Anon-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 ITA85(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. ITA85(2.1) indicates that the reduction in paid up capital(PUC) of the shares would be

A.

$120,000.

B.

$20,000.

C.

$100,000.

D.

$80,000.