Ms. Laura Cooper is the sole shareholder of Cooper Inc. It is a Canadian controlled private corporation and its common shares have a fair market value of $2,950,000, an adjusted cost base (ACB) of $1,375,000, and a paid up capital (PUC) of $1,375,000. At this time, Cooper Inc. has no balance in its GRIP account. Ms. Cooper exchanges all of her Cooper Inc. shares for cash of $1,375,000 and preferred shares that are redeemable for $1,575,000. Determine the ACB and the PUC of the redeemable preferred shares. Indicate the amount, and type, of any income that will result from this transaction. Show your calculations