Ms. Zhang transfers a depreciable asset to a CCPC in which she is the only shareholder. The asset has a cost of $100,000 and a UCC of $64,000. Ms. Zhang will elect a transfer price equal to the fair market value of the asset which is $150,000. This transfer will result in:

 

A. A taxable capital gain of $43,000 with the capital cost of the asset to the transferee being S150,000. B. A taxable capital gain of S25,000, recapture of $36,000 and the capital cost of the asset to the transferee will be $100,000. C. A taxable capital gain of $25,000, recapture of $36,000 and the capital cost of the asset to the transferee will be S150,000. D. A taxable capital gain of $25,000, recapture of $36,000 and the capital cost of the asset to the transferee will be $125,000.