Mr. White owns all 1,000 common shares of White Ltd, with an adjusted cost base (ACB) and paid up capital (PUC) of $1,000. The corporation has been successful and its current FMV is $500,000. Pursuant to ITA 86(1), Mr. White exchanges all 1,000 common shares for non-share consideration of $200,000 and preferred shares with a redemption value of $200,000. Immediately thereafter, Mr. White's only daughter purchases 100 common shares of White Ltd. for a nominal value of $100. ITA 86(2) would deem a gift to Mr. White's daughter of:
A. $100,000.
B. $1,000.
C. $500,000.
D. $200,000.