Company A purchased 100% of the stock of company B resulting in an acquisition of control on July 1, 2019.

Company B has a net capital losses of $40,000, non capital losses of $50,000 and unused charitable donations

of $20,000. Both company A and B are in the specialty business of selling shoes. Which of the following

statements is true:

Group of answer choices

a) Using a 111(4)(e) election the day before the acquisition Company B would elect $160,000 on land it owns

who's capital cost was $100,000 and FMV is $250,000 to utilize all the net capital losses and charitable

donations.

b) Using a 111(4)(e) election the day before the acquistion Company B would elect $140,000 on land it owns

who's capital cost was $100,000 and FMV is $250,000 to utilize all the net capital losses

c) Using a 111(4)(e) election the day before the acquistion Company B would elect $180,000 on land it owns

who's capital cost was $100,000 and FMV is $250,000 to utilize all the net capital losses

d) None of the above statements are correct