Rebecca transfers land to R Co. And makes a joint election under section 85 of the Income Tax Act in the amount of $50,000. The land has a cost of $50,000 and a fair market value of $210,000. Rebecca takes back a demand promissory note of $60,000 and redeemable, retractable preferred shares worth $150,000.

The tax consequences of this transaction are that:

a. Rebecca is deemed to dispose of the land for proceeds of $50,000

b. R Co.s cost of the land is $50,000

c. Rebecca's cost of the preferred shares is $150,000

d. R Co.s cost of the land is $60,000