Company X has net capital loss carryovers of $40,000, non-capital loss carryovers of $50,000, and the fair market value of its depreciable property is $20,000 less than the undepreciated capital cost (UCC) of the property. All the shares of Company X were purchased by an unrelated Canadian corporation conducting a similar business. What losses would be carried forward in Company X after the purchase?

Multiple Choice

$50,000 non-capital loss and $40,000 net capital loss.

$70,000 non-capital loss and $40,000 net capital loss.

$50,000 non-capital loss and $0 net capital loss.

$70,000 non-capital loss and $0 net capital loss.