Jerry, a partner with 30% capital and profit interest, received his Schedule K-1 from Plush Pillows, LP. At the beginning of the year, Jerry's tax basis in his partnership interest was $60,000. His current year Schedule K-1 reported an ordinary loss of $25,000, long-term capital gain of $4,000, qualified dividends of $3,000, $1,500 of non-deductible expenses, a $20,000 cash contribution, and a reduction of $5,000 in his share of partnership debt. What is Jerry's adjusted basis in his partnership interest at the end of the year?

• $35,000.

• $42,000.

• $55,500.

• $60,500.