Grace, James, Helen, and Charles each own equal interests in GJHC Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Jamess basis in his partnership interest is $65,750. For the taxable year, the partnership generates $94,800 of ordinary income and $42,000 of dividend income. For the first 5 months of the year, GJHC generates $28,750 of ordinary income and no dividend income. On June 1, James sells his partnership interest to Robert for a cash payment of $78,000. The partnership has the following assets and no liabilities at the sale date:

		Tax Basis		FMV
Cash	$	31,250		$	31,250
Land held for investment		103,000			123,400
Totals	$	134,250		$	154,650

a. Assuming GJHCs operating agreement provides that the proration method will be used to allocate income or loss when partners interests change during the year, what is Jamess basis in his partnership interest on June 1 just prior to the sale?