Cline, Watters, and Nettles formed a partnership on January 1, 20X1, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) an interest of 10% of the beginning capital balance each year; (2) an annual compensation of $10,000 to Watters; and (3) sharing the remainder of the income or loss in a ratio of 20% for Cline and 40% each for Watters and Nettles. Net income was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew $1,000 for personal use every month during 20X1 and 20X2. What was Nettles's capital balance at the end of 20X1? (Points : 5)

$254,000 $246,000 $238,000 $224,000 $200,000