Parmida sold a Class 1 depreciable asset to a corporation that she controls in exchange for a non-interest bearing demand loan of $100,000 and preferred shares redeemable for $80,000 in total. Susan and the corporation filed a section 85 election electing for the transfer to take place at $120,000. The characteristics of the asset were as follows:

FMV $180,000

Capital Cost 100,000

ACB 100,000

UCC 75,000

The capital cost of the asset to the corporation is:

A) $120,000

B) $110,000

C) $85,000

D) $75,000