A partnership begins its first year with the following capital balances:

Alexander, Capital . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000

Bertrand, Capital . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Coloma, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000

The articles of partnership stipulate that profits and losses be assigned in the following manner:

∙ Each partner is allocated interest equal to 5 percent of the beginning capital balance.

∙ Bertrand is allocated compensation of $45,000 per year.

∙ Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.

∙ Each partner is allowed to withdraw up to $25,000 cash per year.

Assuming that the net income is $115,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma’s capital account at the end of the year?

a. $143,000

b. $135,000

c. $168,000

d. $164,000