An individual has non-depreciable property that they wish to transfer to their corporation under ITA 85. The property has an adjusted cost base of $90,000 and a fair market value of $70,000. Which of the following is an INCORRECT description of the income tax results from transferring this non-depreciable property under ITA 85?

A.

After the non-depreciable property is transferred under ITA 85, the disallowed loss will be added to the cost base of the property, resulting in an adjusted cost base to the corporation of $90,000.

B.

It will make no difference whether the non-depreciable property is transferred under ITA 85 or not -- in either case, the capital loss will be disallowed.

C.

After the non-depreciable property is transferred under ITA 85, the adjusted cost base to the corporation on this property will be $70,000.

D.

As the corporation and individual are affiliated, the capital loss will be disallowed in accordance with ITA 40(2)(g).