On January 2, Year 1, Smith purchased the net assets of Jones 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 $340,000. In Spiffy's cash-basis financial statements for the year ended December 31, Year 1, Spiffy reported revenues in excess of expenses of $60,000. Smith's drawings during Year 1 were $20,000. In Spiffy's financial statements, what amount should be reported as Capital- Smith? A $390,000 B $380,000 C $410,000 D $415,000