At year-end, the Cisco partnership has the following capital balances:

Montana, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . $130,000

Rice, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000

Craig, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Taylor, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000

Profits and losses are split on a 3:3:2:2 basis, respectively. Craig decides to leave the partnership and is paid $90,000 from the business based on the original contractual agreement. If the goodwill method is to be applied, what is the balance of Montana’s capital account after Craig withdraws?

a. $133,000.

b. $137,500.

c. $140,000.

d. $145,000.