Smith and Duncan are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Smith and Duncan decided to form a new partnership with Johnson, who invested land valued at $15,000 for a 20 percent capital interest in the new partnership. Johnson’s cost of the land was $12,000. The partnership elected to use the bonus method to record Johnson’s admission into the partnership. Johnson’s capital account should be credited for

a. $12,000.

b. $15,000.

c. $16,000.

d. $19,000.