Capital balances in the MURF partnership are Molly, Capital $50,000; Ursula, Capital $40,000; Ray, Capital $30,000; and Fred, Capital $20,000, and income ratios are 4:3:2:1, respectively. Fred withdraws from the firm following payment of $29,000 in cash from the partnership. Ursula’s capital balance after recording the withdrawal of Fred is:

a. $36,000.                   

b. $37,000.                 

c. $38,000.

 d. $40,000.