On May 1, 20X1, Cathy and Mort formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cathy contributed a parcel of land that cost her $10,000. Mort contributed $40,000 cash. The land was sold for $18,000 immediately after the partnership’s formation. What amount should be recorded in Cathy’s capital account at the time the partnership is formed the partnership’s?

a. $18,000

b. $17,400

c. $15,000

d. $10,000