On January 2, Smith purchased the net assets of Jimmy's Cleaning, a sole proprietorship, for $350,000 and commenced operations of Spiffy Cleaning, a sole proprietorship. The assets had a carrying amount of $375,000 and a market value of $360,000. In Spiffy's cash-basis financial statements for the year ended December 31, Spiffy reported revenues in excess of expenses of $60,000. Smith's distributions during the year were $20,000. In Spiffy's financial statements, what amount should be reported as Capital -- Smith?

A. $390,000
B. $400,000
C. $415,000
D. $410,000