Leo Silver Is the Sole Shareholder Ag Co

Leo Silver is the sole shareholder Ag Co., owning only common shares which have an ACB and PUC of $200.Leo has successfully operated the business for twenty-five years, and the shares now have a value of $900,000.Leo would like to transfer the business to Leo's oldest child, Ronan, using Section 86.Which of the following would not apply in this transaction?

A) Leo will receive preferred shares in Ag Co., redeemable for $900,000.
B) Leo's new shares will have an ACB of $900,000.
C) Ronan will acquire newly issued common shares of Ag Co.for $200.
D) Ronan's shares will have an ACB of $200.