Caitlin, Chris, and Molly Are Partners and Share Income and Losses

Multiple Choice

Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership's capital balances are Caitlin, $120,000; Chris, $80,000; and Molly, $100,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $60,000.
-The balance in Caitlin's capital account immediately after Paul's admission is:

A) $60,000
B) $123,600
C) $72,000
D) $120,000
E) $116,400