THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Glen Cooke invested in a limited partnership six years ago. At that time, he purchased one limited partnership investment unit for $15,000. In the years since Glen purchased his investment unit, the partnership has undertaken several actions. Year Action 1 2 3 4 The partnership allocated a $2,500 tax loss to each partnership unit. The partnership allocated a tax loss of $1,000 to each partnership unit. The partnership allocated a further tax loss of $1,000 to each partnership unit. (a) The partnership refinanced the debt on its investment and distributed $500 to each partnership unit. (b) The partnership allocated taxable income of $350 to each partnership unit. (a) At the beginning of the year, Glen purchased an additional partnership unit for $14,000. (b) During the year, the partnership allocated $550 of taxable income to each partnership unit. (a) The partnership repaid $450 of equity to each partnership unit. (b) The partnership allocated taxable income of $575 to each partnership unit. 5 6 15. What is the adjusted cost base (ACB) of Glen's investment at the end of the sixth year? (1) $28,450 (2) $25,700 (3) $19,000 (4) $22,750 16. If Glen sold his interest in the partnership today for $14,000 per investment unit, what would be Glen's capital gain or capital loss on the sale? (1) $5,850 capital loss (2) $2,300 capital gain (3) $1,550 capital gain (4) $3,750 capital loss