Ria transferred a piece of machinery to his corporation, making use of Section 85 of the Income Tax Act. The equipments fair market value was $20,000 and its UCC was $15,000. The elected transfer price was $15,000. As consideration, Ria received a $14,900 promissory note and 5,100 preferred shares with a redemption amount of $1 per share. What is the adjusted cost base of Rias preferred shares?

Select one:

a.

$ 5,100

b.

$ 100

c.

$ 5,000

d.

$ 15,000