On January 1, 2019, Rob and Ed form the Robed Partnership.The partnership agreement provides Rob with a 30% share

of all profits and losses and other items.Ed initially contributes $40,000 and then makes a further contributions of

$20,000 in July 2019. Ed withdraws $27,000 on August 31, 2019.The Robed Partnership makes $10,000 in charitable

donations in the year, allocated based on the same % as the share of profits.

The Robed Partnership has the following sources of income for the year ending December 31, 2019:

Net Business Income $ 300,000

Capital Gain on Sale of Shares $ 80,000

Actual Eligible Dividends (38% gross-up) Received from Canadian Corporations $ 15,000

Required:

i. Determine the taxable amount that would be included in Ed's 2019 Net Income for Tax Purposes (NIFT) as a

consequence of his interest in the Robed Partnership. (1 mark)

ii. Determine the adjusted cost base of Ed's interest in the Robed Partnership at the end of 2019. (1 mark)