In March of Year 1, Sally Rogers and Peter Dean began a business partnership. Each contributes cash of $75,000 and agrees to share income and losses equally. The following information is provided for the first fiscal year of the partnership.

a.) The partnership net income of $328,000 consisted of the following sources of income:

Business income $300,000

Eligible dividends $20,000

Taxable capital gains $10,000

Allowable capital losses ($2,000)

Total $328,000

b.) In addition, the partnership received a tax-free capital dividend of $12,000 and donated $3,000 to registered charities.

c.) Each partner takes draws totalling $60,000

Determine the adjusted cost base for the partnership interest of each of the partners at January 1, Year 2.