X Y Z decided to form XYZ Partnership. It was agreed that X will contribute an equipment with assessed value of 100000 with historical cost of 800000 and accumulated depreciation of 600000. On the date of formation, the fair value of equipment was 200000.

Y will contribute a land and building with carrying value of 1200000 and fair value of 1500000. The land and building are subject to a mortgage payable amounting to 300000 to be assumed by the partnership.

The partners agreed that Y will have 40% capital interest in the partnership. The partners also agreed that Z will contribute sufficient cash to the partnership.

What is the cash contributed by Z in the XYZ partnership?

a.) 200000

b.) 234375

c.) 266667

d.) 216667

please provide explanations and solutions