Eric owns a building that originally cost $100,000 and has an undepreciated capital cost of $70,000. Eric sells the building to a corporation at the fair market value price of $140,000 in exchange for debt of $80,000 and preferred shares with a value of $60,000. Eric and the corporation will make a Section 85 election with respect to the sale.
Determine the minimum elected transfer price under Section 85. Income tax reference: ITA 85(1).