Valerie owns all of the common shares of V Ltd. The shares have an ACB and PUC

Question:

Valerie owns all of the common shares of V Ltd. The shares have an ACB and PUC of $10,000 and are worth $800,000. In the course of a reorganization of capital, Valerie exchanges all of her common shares for $700,000 of redeemable preferred shares of V and $100,000 of debt.
Determine the tax implications for Valerie. Income tax reference: ITA 84(3), 86(1), (2.1).