16) On June 1, A and B pooled their assets to form a partnership, with the firm to take over their business assets and assumethe liabilities. Partners' capitals are to be based on net assets transferred after the following adjustments: 1. B's inventory is to be increased by P5,000. 2. An allowance for doubtful accounts of P2,800 and P2,500 are to be set up on the books of A and B, respectively. 3. Accounts payable of P7,000 is to be recognized on the books of A. The individual trial balances on June 1, before adjustments follow: A. capital B. capital P 90,000 P 45,000 10,000 5,000 80,000 40,000 Assets Liabilities Capital What is the capital balance of B after adjustments? a. P42,000 b. P45,200 c. P42,500 d. P35,500