Crystal Collins Acquires an Option to Buy a Piece of Land

Crystal Collins acquires an option to buy a piece of land at a price of $100,000. The land will be used to expand her greenhouse business. The cost of the option is $5,000. Which of the following statements is NOT correct?

A) If the option expires, Crystal will have a business loss of $5,000.
B) If Crystal exercises the option and acquires the land, the adjusted cost base of the land will be $105,000.
C) If the option expires, Crystal will have an allowable capital loss of $2,500.
D) If Crystal sells the option for $5,000, the transaction will have no effect on her Net Income For Tax Purposes.