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On January 1, 2023, Hugh Deal and Sly Deal form a partnership together. The partnership has a December 31 tax year-end. The partnership agreement provides
On January 1, 2023, Hugh Deal and Sly Deal form a partnership together. The partnership has a December 31 tax year-end. The partnership agreement provides Hugh with a 30% share of profits and losses. Hugh initially contributes $30,400 and Sly contributes $70,933. Hugh then withdraws $16,800 on August 31, 2023. The partnership has the following sources of income for 2023: Capital gain on the sale of shares $ 40,100 Net rental income $ 6,000 Net business income $ 151,240 Determine the ACB of Hugh's partnership interest on December 31, 2023
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