Paula and Penny have capital balances of $120 000 and $150 000 respectively and use the variable capital balances method. If their profit/loss sharing ratios are Paula 40% and Penny 60%, the balance of Pennys capital balance after a profit of $60 000 is:

Select one:

a. $174 000

b. $150 000

c. $114 000

d. $186 000