You have been asked to compute the capital dividend account of Granatstein Ltd., a Canadian-controlled private corporation incorporated in 1986. You have reviewed the tax returns of the corporation for the period January 1, 1986 to December 31, 2008 and made the following notes:
1987 Disposed of bonds resulting in a capital gain of $10,000.
1989 Received taxable dividend of $2,000 and capital dividend of $5,000.
1990 Disposed of shares resulting in a capital loss of $4,000.
1992 Disposed of equipment resulting in a capital gain of $6,000 and recapture of $3,000.
1994 Eligible capital property was purchased for $40,000.
1995 Sold vacant land and reported capital gain of $100,000.
1998 1995 capital gain of sale of vacant land was reassessed by the CRA as income. Granatstein Limited did not fight the reassessment.
2001 Sold shares resulting in a capital gain of $20,000.
2003 Received life insurance proceeds of $100,000 on a life insurance policy on the life of the company president purchased in 1995. As at January 1, 2003, the policy had an adjusted cost basis of $20,000.
2004 Paid capital dividends of $50,000.
2007 Sold a customer list for $100,000. The company's cumulative eligible capital balance at the time of the sale was $25,000.
2008 Sold shares resulting in a capital gain of $37,500.
REQUIRED
Compute the balance in Granatstein Ltd.'s capital dividend account at the end of the 2008 taxation year. Show all calculations and explain why you omitted any of the above amounts in your answer.