Lambda transferred a non-depreciable capital property to a corporation. The fair market value of the property was $130,000 and its adjusted cost base to him was $40,000. As consideration for the property, he received a promissory note for $20,000, 10 preferred shares with a total retraction value of $70,000 and 100 common shares worth a total of $40,000. On the transfer, he elected under subsection 85(1) at $40,000. Which one of the following choices represents the adjusted cost base of the preferred and common shares, respectively?

a) nil and $20,000

b) $12,727 and $7,273

c) $20,000 and nil

d) $70,000 and $40,000