John owns land with an adjusted cost base of $250,000 and a fair market value of $320,000. He sells the sand to his son for $250,000. Which of the following statements is correct? John will have a taxable capital gain of $70,000 and the adjusted cost base of the land to his son will be $250,000. John will have a taxable capital gain of $35,000 and the adjusted cost base of the land to his son will be $250,000. John will have a taxable capital gain of $35,000 and the adjusted cost base of the land to his son will be $320,000. John will have a taxable capital gain of $70,000 and the adjusted cost base of the land to his son will be $320,000