The KLM partnership (to which N seeks admittance), the capital balances of K, L, and M, who share income in the ratio of 4:4:2 are:

K $200,000

L $200,000

M $100,000

If no goodwill or bonus is recorded, how much should N invest for a 20 percent interest?

a.

$ 150,000

b.

$ 125,000

c.

$ 200,000

d.

$ 100,000