A partnership has the following capital balances with partners’ profit and loss percentages indicated parenthetically:

Burks (35%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $280,000

Donovan (40%) . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

Watkins (25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000

Ranzilla agrees to pay a total of $245,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner’s payment. What is Donovan’s capital balance after the transaction?

a. $225,000

b. $294,000

c. $392,000

d. $398,000