The capital account balances for Leo & Bill LLP on January 1, 2013, were as follows:

Leos capital $200,000

Bills capital $100,000 Leo and Bill shared net income and losses in the ratio of 60% and 40%, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash to the partnership, and no goodwill was recognized (bonus method). What are the capital balances of May's, Leos and Bills accounts after the new partnership is created?

Multiple Choice

• Leo $176,000, Bill $84,000, May 140,000

• Leo $224,000, Bill $116,000, May 100,000

• Leo $176,000, Bill $96,000, May 140,000

• Leo $226,000, Bill $84,000, May 100,000