Joe Conners is a member of a partnership with a December 31 year end. Joe's share of the 2020 partnership allocations was as follows: • Net Business Loss For Tax Purposes of $25,000.
• Charitable Donations of $1,000.
Joe took drawings totalling $10,000 from the partnership during 2020. Joe's adjusted cost base (ACB)at January 1, 2020 was $59,000. What is the ACB of Joe's partnership interest at January 1, 2021?
A)$23,000.
B)$24,000.
C)$25,000.
D)$33,000.

Question

Quizplus · Accepted Answer

The ACB of Joe's partnership interest at January 1, 2021 is $23,000. This is calculated as follows:ACB at January 1, 2020: $59,000Add: Net Business Loss For Tax Purposes: $25,000Less: Charitable Donations: $1,000Less: Drawings: $10,000ACB at January 1, 2021: $23,000

Joe Conners Is a Member of a Partnership with a December