1. Mr. Poulet is a partner in a partnership with a December 31 year end. Mr. Poulet's share of the partnership allocations for 2019 are as follows:

business income of $120,000

charitable donations of $1,500

partnership draws totalling $100,000

Mr. Poulet's partnership interest had an adjusted cost base on January 1, 2019 of $222,000. What is the adjusted cost base on January 1, 2020?

1. A. $120,500
2. B. $240,500
3. C. $242,000
4. D. $243,500