Mr. A has a 50% partnership interest in ABC Ltd. The calculation of business income from the partnership for tax purposes before any allocation to the partners for the December 31,2021, taxation year is as follows:

Net income per financial statements $775,000

 

Partner salaries 150,000

Non-deductible meal and entertainment expenses 5,000

Political Contributions 152,000

Non-deductible life insurance premiums 33,000340,000

Deduct:

Capital Cost Allowance (45,000)

Net business income for tax purposes to be allocated $1,070,000

The partnership also received the following income that was not included in the calculation of business income above:

Capital dividends 60,000

Capital gains 40,000

Dividend income 80,000

The adjusted cost base (ACB) Mr.A of his partnership interest was $49,000 at the beginning of the year. Mr.A received 50% of partner salaries.

Required:

Compute the ACB of Mr.A's partnership interest in ABC Ltd. at the end of the year.