On March 20, 2020 two partners (Bert and Ernie) contributed $50,000 in return for an equal share of the profits of their partnership. On January 1, 2024, Bert sold his interest to Oscar for $150,000.

The following is the income statement of the partnership:

Sesame Buns Partnership

Income Statement

For the year ended December 31, 2023

Gross revenue $424,400

Expenses:

Office expenses $69,000

Rent 58,300

Office salaries 74,300

Charitable donations 10,600

Amortization (Note 1) 23,300

Meals and entertainment 15,000 250,500

173,900

Other income:

Gain on sale of shares (Note 2) $84,800

Dividends from Canadian-resident public corporations 40,000

Capital dividends 17,000 141,800

Net income $315,700

Notes:

1. Capital cost allowance (CCA) for 2023 was $40,300.
2. The capital gain for tax purposes is the same as the financial accounting gain.

In 2023, each partner drew $132,000.

Prior year financial statements of the partnership provided the following information for the following years ended December 31:

2020 2021 2022

Business income (loss) $(70,000) $127,300 $159,100

Taxable capital gains - 12,800 -

Charitable donations - 4,200 8,400

Drawings Bert 24,000 48,000 60,000

Drawings Ernie 24,000 48,000 72,000

The following applies to Bert in 2023:

1. he personally received cash dividends (eligible) from Canadian-resident public corporations in the amount of $10,345;
2. he is entitled to the federal personal tax credit of $2,160 for a single person;
3. he has a net capital loss of $80,000 carried forward from 2017; and
4. he will pay personal federal income tax of $17,820 + 26% of the balance of taxable income in excess of $100,392.

Required:

Compute Bert's basic federal tax payable for 2023, showing all calculations, including partnership income for the year and the adjusted cost base (ACB) of Bert's partnership interest immediately before the sale.