Missy, under ITA 85, transferred a piece of her personal land to her corporation, where she has 100% of the shares. TheACB of the land is $150,000and theFMV $250,000.The property was mortgaged for $50,000. On her end, Missy received cash of $200,000 and legal stated capital of $10,000. After the transaction, the corporation then took over the mortgage. What is theelected transfer price and the ACB of the preferred shares?

a.Elected transfer price of $150,000 and ACB of $0.

b.Elected transfer price of $250,000 and ACB of $0.

c.Elected transfer price of $250,000 and ACB of $240,000.

d.Elected transfer price of $260,000 and ACB of $50,000.

e.Elected transfer price of $260,000 and ACB of $240,000.