During the current year, all of the assets of Linden Enterprises, a Canadian controlled private corporation, were sold. Among the assets was goodwill with a fair market value of $425,000. As the goodwill was internally generated, the balance in the corporations cumulative eligible capital account was nil. Which of the following statements is correct?

		Linden will report active business income of $318,750, with no addition to the capital dividend account.
		Linden will report a taxable capital gain of $212,500, and there will be a $212,500 addition to the capital dividend account.
		Linden will report active business income of $212,500, and there will be a $212,500 addition to the capital dividend account.
		Linden will report active business income of $318,750, and there will be a $106,250 addition to the capital dividend account.