1. Liam, Michael and Noah own interests in the LMN Partnership. Their current capital account balances are as follows: Liam $250,000 Michael 300,000 Noah 200,000 2. 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, Olivia's initial capital balance after entering the partnership is: A. $175,000 B. $170,000 C. $215,000 D. $150,000