Which one of the following is an advantage for a vendor and purchaser using a section 22 election to transfer accounts receivable rather than electing under section 85?

Select one:

A) The vendor will realize a loss that may be a superficial loss

B) The vendor will realize a loss that is a capital loss

C) The vendor will not be required to add the prior year's doubtful debts reserve to income.

D) The purchaser will be able to take a doubtful debts reserve on the accounts receivable.