11. Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows:

Liam $450,000

Michael 350,000

Noah 200,000

Partnership income is shared in a 1:5:4 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $300,000. Partnership identifiable net assets are currently reported at amounts approximating fair value.

Using the transfer of capital interests approach, Olivias initial capital balance after entering the partnership is: Select one:

a. $300,000

b. $175,000

c. $200,000

d. $140,000