Carly Bobson is a sole proprietor who began his business in 2012 with $20,000 cash. During the year 2012, he earned revenues of $180,000, incurred expenses of $75,000, and withdrew $120,000. Which of the following is true for the sole proprietorship?

a. The net income is $120,000.

b. The owner's equity at the end of 2012 is $125,000.

c. The drawing account will be closed with a credit of $100,000.

d. The capital account balance at the end of year 2012 is $5,000