The capital balances of the DEF Partnership are as follows:

Danielson$180,000

Eklund95,000

Forsberg150,000

Total$425,000

The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%.

Gustafson joins the partnership by contributing $125,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value.

If the goodwill method is used to record the admission of Gustafson, Forsberg's capital balance immediately after the addition of Gustafson is:

Select one:

A.$250,000

B.$172,500

C.$225,000

D.$210,000