Mr. Black is a partner in Black & White Enterprises, with two equal partners, Mr....
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Accounting
Mr. Black is a partner in Black & White Enterprises, with two equal partners, Mr. Black and Mr. White. The approximate fair market value of the partnership business is $300,000. Mr. Black wants to retire, and he is planning on selling his partnership interest to Ms. Jones for $385,000. Mr. Black advises you that the adjusted cost base of his partnership interest at the end of the previous year was $260,000. During the current year he is allocated $55,000 in salaries and $25,000 of his share of the net income of the partnership. Mr. Black's taxable capital gain on disposition of his partnership interest is
A.
$45,000.
B.
$22,500.
C.
$150,000.
D.
$385,000.
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