At the beginning of the current year, Ursula Inc. has 130000 shares of common stock outstanding. The shares were originally issued at $11 per share for total proceeds of $1430000, with this amount constituting the PUC. During the current year, a creditor holding $425000 of the company's debt agrees to accept 42800 newly issued common shares of the company in exchange for settlement of the debt obligation. At the time of this exchange, the shares are trading at $13.80 per share. What is the amount of the total deemed dividend under s 84(1) as a result of this transaction? (do not consider gross up)