The terminal loss realized on the sale of an asset by Seller to an affiliated person would be

A. denied and the Seller would continue to claim normal capital cost allowance (CCA) on the amount of the denied loss. When the affiliated person disposed of the asset to a third party, Seller would claim a terminal loss.

B. added to the cost of the asset to the affiliated person.

C. permanently denied to all parties to the transaction due to the attempt to obtain a tax advantage

D. taxed as a capital loss of Seller and 50% would be deductible against capital gains of Seller.