Johnson & Thompson is a partnership formed a few years ago by Martin Johnson and Tommy Thompson. Based on their partnership agreement, they share in the profit of the partnership with 75% going to Johnson and 25% going to Thompson, after a salary of $50,000 is paid to each partner and 5% interest is accrued on their initial capital contributions. At formation of the partnership, Johnson contributed $160,000 and Thompson contributed $200,000. At the beginning of the current year, Johnson had a capital balance of $250,000 and Thompson had a capital balance of $300,000. Profit for the year was $150,000. Which of the following describes how profit and loss should be allocated? 

A. The allocation to Johnson is $82,000. 

B. The allocation to Johnson is $58,000. 

C. The allocation to Thompson is $70,625. 

D. The allocation to Thompson is $84,000.