When Nada and Rand decided to incorporate their partnership, the trial balance was as follows:

Debit

Credit

Cash

$60,000

Accounts Receivable (net)

35,000

Inventory

65,000

Equipment

130,000

Accounts Payable

$60,000

Nada, Capital

150,000

Rand, Capital

80,000

Total

$290,000

$290,000

The partnership's books will be closed, and new books will be used for N & R Corporation.

The following additional information is available:

1. The estimated fair values of the assets & liabilities are as follows:

Accounts Receivable

$38,000

Inventory

70,000

Equipment

125,000

Accounts Payable

58,000

2. All assets and liabilities are transferred to the corporation.

3. The common stock is $7 par. Nada and Rand receive a total of 30,000 shares.

4. Nada and Rand share profits and losses in the ratio 7:3.

Partners capital account balances after the revaluation of net assets will be as follows:

Select one:

a. Nada $153,500, Rand $81,500.

b. Nada $145,100, Rand $77,900.

c. Nada $154,900, Rand $82,100.

d. Nada $146,500, Rand $78,500.