P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest. C contributes $38,000 to the partnership and the goodwill method is used. How much goodwill would be allocated to L?

Select one:

a.$10,400

b.$14,400

c.$8,320

d.$0

e.$18,000