Nunes, Orta and Paulo are partners providing engineering services. Relevant data regarding income-sharing relationships and capital balances are as follows:

Partner	Capital Balance	Income Share
Nunes	$ 250,000	20%
Orta	180,000	30%
Paulo	150,000	50%
Totals	$ 580,000	100%

Nunes retires and receives $300,000 in cash from the partnership. Partnership net assets are recorded at amounts approximating fair value. If the total goodwill approach is used, Paulo's capital balance after Nunes' retirement is:

Select one:

A. $306,250

B. $275,000

C. $150,000

D. $250,500