Cypress Ridge Private Ltd. has a verified Capital Dividend A…
Cypress Ridge Private Ltd. has a verified Capital Dividend Account balance of $75,000. The corporation declares a single dividend of $100,000 and files a subsection 83(2) election for the full amount. After discovering that the election exceeds the available CDA, Cypress Ridge makes a valid subsection 184(3) election concerning the $25,000 excess. Which statement correctly describes the general result?