At December 31, Rod and Sheri are partners with capital balances of $40,000 and $20,000, and they share profits and losses in the ratio of 2:1, respectively. On this date, Pete invests $17,000 in cash for a 20 percent interest in the new partnership’s capital and profit. Assuming that the bonus method is used, how much should be credited to Pete’s capital account on December 31?

a. $12,000

b. $15,000

c. $15,400

d. $17,000