The following balance sheet information is for the partnership of Abel, Ball, and Catt:

Cash $ 210,000 Liabilities $ 510,000

Other assets 1,500,000 Abel, Capital (40%) 300,000

Ball, Capital (40%) 480,000

Catt, Capital (20%) 420,000

$1,710,000 $1,710,000

Figures shown parenthetically reflect agreed profit and loss sharing percentages.

If the assets are fairly valued on the above balance sheet and the partnership wishes to admit Dent as a new 1/5 partner without recording goodwill or bonus, Dent should invest cash or other assets of

a. $427,500.

b. $240,000.

c. $300,000.

d. $342,000.