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.As part of a Section 86 exchange of shares in a reorganization, Ms. Cooper exchanges all of her Cooper Inc. shares for cash of $1,375,000 and redeemable preferred shares that have a fair market value and legal stated capital of $1,575,000.

Determine the ACB and the PUC (after any PUC reduction) of the redeemable preferred shares. Supporting calculations must be provided.