Use the Following Information to Answer Questions Partnership Income Is Shared in a 3:5:2 Ratio

Use the following information to answer Questions.
Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows:
$$\begin{array} { | l | r | } \hline \text { Liam } & \$ 250,000 \\\hline \text { Michael } & 300,000 \\\hline \text { Noah } & 200,000 \\\hline\end{array}$$ Partnership income is shared in a 3:5:2 ratio. Olivia buys a 20% interest in the partnership by acquiring 20% of each existing partner's interest, paying the three partners a total of $175,000. Partnership identifiable net assets are currently reported at amounts approximating fair value.
-Using the transfer of capital interests approach, Liam's capital balance immediately following admission of Olivia is:

A) $250,000
B) $200,000
C) $262,500
D) $218,750