The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2014 follows. The partners share profits and losses in the ratio of 3:2:5, respectively.

Nina is retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of $540,000 at January 1, 2014. Pinta and Santa Maria agree that the partnership will pay Nina $135,000 cash for her partnership interest. There is no goodwill is to be recorded. What is the balance of Pinta's capital account after Nina's retirement?

Select one:

a. $138,000

b. $108,000

c. $120,000

d. $132,000