Tire Corp. (Tire) acquired Car Service Corp. (CSC) on June 1 of the current year. CSC has net capital losses and non-capital losses. Tire has an April 30 year end and CSC has a May 31 year end. Tire manufactures tires and CSC provides car-sharing services. Tire plans to continue to operate the car-sharing services.

Which of the following would occur as a consequence of this acquisition of control?

a.Short taxation year

b.Restrictions on the use of net capital losses

c.Expiry of non-capital losses

d.Deemed disposition of all assets with accrued losses