On January 1, the capital accounts of Ray Woods and Jane Smith have balances of $160,000 and $100,000, respectively. Tom Jones is to be admitted to the partnership. Jones buys one-fifth of Woods interest for $30,000 and one-fourth of Smiths interest for $45,000. Which of the following is true to record this transaction?

a. Tom Jones capital should be credited for $75,000

b. Jane Smith capital should be credited for $25,000

c. Tom Jones capital should be credited for $57,000

d. Ray Woods capital should be debited for $30,000