Sylvia is the sole shareholder of Strained Ltd., a taxable Canadian corporation. Sylvia transferred a non-depreciable capital property having adjusted cost base of $40,000 and a fair market value of $50,000 to Strained Ltd. in exchange for the following package of consideration.

Cash $3,000

Debt 2,000

Preferred shares (FMV and legal stated capital) 15,000

Common Shares (FMV and legal stated capital) 30,000

Total 50,000

Sylvia and Strained Ltd. made a joint election under section 85, electing a transfer price of $40,000.

The cost to Sylvia of the common shares received as consideration is:

Select one:

A) $35,000

B) $23,000

C) $23,333

D) $20,000