Track and Smith Are Partners Sharing Profits and Losses in a 3:2

Multiple Choice

Track and Smith are partners sharing profits and losses in a 3:2 ratio for Track and Smith,respectively.Their capital balances are $12,000 and $18,000,respectively.The partners agree to admit Don for $8,000 for a 30% interest in the partnership.Smith's capital balance after admitting Don is:

A) $12,000.
B) $19,200.
C) $16,640.
D) $10,000.