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XYZ Partnership is an existing partnership with two equal partners. Each partner made an initial capital contribution of $15,000. The partnership would like to bring

XYZ Partnership is an existing partnership with two equal partners. Each partner made an initial capital contribution of $15,000. The partnership would like to bring in a new partner, Mr. White. After the transaction each partner will have a one-third interest in the partnership. Mr. White agrees to pay $35,000 to each of the existing two partners. Mr. White's adjusted cost base (ACB) of his newly acquired partnership interest is

A.

$70,000.

B.

$35,000.

C.

$50,000.

D.

$15,000.

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