ABC Legal Services operates as a proprietorship. During the accounting period, it earned revenues of $150,000, it incurred expenses of $100,000, and the owner withdrew $12,000 for personal uses.

What is the balance of the Profit or Loss Summary account BEFORE the accountant closed the profit or loss to another account in Step 3 of the closing process?

A) $38,000 B) $50,000 C) 138,000 D) $150,000

Please provide the correct answer and explanation as well.