On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the

following data with profit or loss ratio of 1:6:3:

Current Assets P1,000,000 Total Liabilities P600,000

Noncurrent Assets 2,000,000 A, Capital 900,000

B, Capital 800,000

C, Capital 700,000

On January 1, 2021, D is admitted to the partnership by purchasing 40% of the capital interest of

B at a price of P500,000.

35. What is the capital balance of B after the admission of D on January 1,

2021?

a. P540,000

b. P480,000

c. P420,000

d. P300,000