Corp 1 owns assets valued at $2,000,000 with a cost base of $1,600,000. Corp 1 entered into an agreement with Corp 2 for the sale of all of its assets at their market value. Under the terms of the agreement the two corporations agree to an elected amount as per ITA section 85(1), Corp 1 transfers all of its assets to Corp 2, and in exchange Corp 2 transfers $1,600,000 in cash and its own shares valued at $400,000 to Corp 1. On December 30, 2020 Corp 1 sells its shares of Corp 2 for $900,000. How much is the taxable capital gain that Corp 1 will recognized on its sales of Corp 2 shares?

A. $500,000

B. $250,000

C. $900,000

D. $450,000

E. none of the above