On January 1, 2020, John Traverse Acquires 12,000 Units of the RV

Multiple Choice

On January 1, 2020, John Traverse acquires 12,000 units of the RV Income Trust at a cost of $720,000. During 2020, the trust makes a distribution of $5.00 per unit. Of this total $1.50 is a return of capital while the remaining $3.50 is property income. John reinvests the total distribution in RV units at a cost of $55 per unit. What is the adjusted cost base of John's units on December 31, 2020?

A) $58.21 per unit.
B) $53.62 per unit.
C) $59.58 per unit.
D) $60.00 per unit.