On November 25, 2021 Ervin sold 100 shares of Mighty Ltd., an eligible small business corporation (ESBC), for $32 per share. He purchased the shares in 2020 for $28 per share. On December 15, 2021 he reinvested the proceeds by buying 80 shares of Mouse Ltd. for $40 per share. Mouse Ltd. is also an ESBC so he was able to use the ITA 44.1 election to defer the 2021 capital gain. Ervin sold all of the Mouse Ltd. shares on July 5, 2022 for $52 per share. His taxable capital gain for 2022 is:

a. $960.

b. $680.

c. $1,360.

d. $480.