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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