Noor Ali Transfers Shares in Ali Manufacturing Inc

Noor Ali transfers shares in Ali Manufacturing Inc. to Ali Holdings Ltd., a corporation which she controls. The shares have an adjusted cost base of $35,000 and a fair market value of $5,000. Noor elects to transfer these shares under Section 85 at an elected value of $5,000. The $30,000 capital loss on this transfer:

A) will be disallowed and kept in the tax records of the transferor to be recognized when the corporation is subject to an acquisition of control or is wound up.
B) will be disallowed and allocated to the ACB of the shares in the tax records of Ali Holdings Ltd.
C) will be deductible to the transferor as the transferor is an individual.
D) will be deductible to the transferee as the transferor is an individual.