On July 1, 20x1, C was admitted to the partnership when he acquired 20% interest in the net assets and profits of the firm for a ?120,000 investment. The net assets of the firm as of this date approximate their fair values. How much is the capital balance of A after the admission of C if C's admission was accounted for using the bonus method?

a. 190,400

b. 192,800

c. 194,800

d. 206,667

4. The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of July 1, 20x1: Capital accounts Profit & loss ratios A, Capital 200,000 40% B, Capital 400,000 60% 600,000