Surplus Accounts 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 2008. The balance in its capital dividend account was nil on January 1, 2008. Ms. Tsakiris, a Canadian resident, is the sole shareholder.
Surplus Accounts 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:

Additional Information
(1) The balance in the cumulative eligible capital account reflects the purchase of the customer lists in 1998 for $40,000 less the tax write-offs for 1998 to 2007, inclusive.
(2) In addition to the above assets, there is $35,000 of goodwill which will also be sold.
REQUIRED
Compute the effect on income and the capital dividend account balance immediately after the above transactions.

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Cost UCC/CEC Estimated proceeds Estimated selling costs Assets Investments.. 60,000 Land Building Equpmnt .. 35,000 Customer lists Note 1) S 22,000 200,000 125,000 8,000 $500 10,000 6,000 400 40,000 70,000 45,000 Nil 40.000 16,000 60,000