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JB Partnership has two partners, J and B, who are equal partners in the partnership....

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Accounting

JB Partnership has two partners, J and B, who are equal partners in the partnership. The partnership has completed its first year of business operations. Mr. J provides you with the following information:

J and B contributed $50,000 each at the inception of the partnership.

Net business income of the partnership for the year, after salaries to the partners, is $40,000.

The partnership paid salaries of $60,000 to each of the partners.

In addition to his salary, Mr. J withdrew $10,000 from the partnership.

Based on this information, what is the adjusted cost base of Mr. J's partnership interest?

A.

$50,000

B.

$60,000

C.

$80,000

D.

$70,000

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