Sabres Limited, a Canadian- controlled private corporation whose fiscal year end is December 31, provides you with the following data concerning its tax accounts and capital transactions for 2016. The balance in its capital dividend account was nil on January 1, 2017. Mr. Tsakiris, a Canadian resident, is the sole shareholder.

Sabres Limited is considering winding up the corporation and wishes to determine the impact of the sale of all its capital assets on its tax surplus accounts. The following capital assets are recorded in the books of account:

Assets

Investment - Cost 60,000, UCC nil, Estimated Proceeds 22,000, Estimated selling costs 500

Land - Cost 40,000, UCC nil, Estimated Proceeds 200,000, Estimated selling costs 10,000

Building - Cost 70,000, UCC 45,000, Estimated Proceeds 125,000, Estimated Selling costs 6,000

Equipment - Cost 35,000, UCC nil, Estimated Proceeds 8,000, Estimated selling costs 400

Customer Lists (Class 14.1) - Cost 40,000, UCC 16,000, Estimated Proceeds 60,000, Estimated selling costs nil

Notes

(1) The balance in Class 14.1 reflects the purchase of the customer lists in 2007 for $40,000 less the tax write-offs for 2007 to 2016 inclusive

(2) In addition to the above assets, there is $35,000 of goodwill which will also be sold

Required: You have been asked to determine the effect on the capital dividend account balance immediately after the above transactions.