On July 1, 2019, the Flex Company's warehouse was completely destroyed in a fire. The capital cost of the warehouse was $1,500,000 and its January 1, 2019 UCC was $1,248,539. On December 1, 2019, the company received insurance proceeds of $1,650,000, an amount equal to the estimated fair market value of the building. On April 1, 2020, the Company acquires an existing warehouse building for $1,800,000. Provided the Company makes all possible elections to reduce Tax Payable, what amount will be added to the Class 1 UCC as the result of this acquisition?

Select one:

A.

$1,548,539.

B.

$1,248,539

C.

$1,398,539.

D.

$1,650,000