X and Y are in partnership. Z was admitted to the partnership on June 30, 2020, introducing $40 000 cash. Immediately before this admission, the partnership conducted a revaluation exercise, which saw a net increase of $24 000 in the value of the tangible assets. Goodwill, which was not maintained on the books, was valued at $10 000. The new partnership has agreed to maintain the policy of omitting goodwill from the books. Profits and losses in the new partnership will be shared in the ratio 2:1:1.

What is the balance in Candles account immediately after the admission?

a. $48 500

b. $43 500

c. $37 500

d. $31 500