Question: Peter is a partner in AP partnership. Peter contributed $50,000 in exchange for 30% interest in AP. He received his share of dividend of $5,000

Peter is a partner in AP partnership. Peter contributed $50,000 in exchange for 30% interest in AP. He received his share of dividend of $5,000 and interest of $4,000 from partnership. Charitable contribution of $1,000 is paid by partnership and distributed and distributed $1,000 to each partner. Peter's share of partnership income is $5,000 in the current year. What is Peter's outside basis at the end of the year?

A. $56,700

B. $63,000

C. 65,000

D. $55,200

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