In her new margin account, a client purchases $60,000 of abc and pays for the shares in full. As the result of this trade, the sma in the account would be?

The excess margin from a customer's margin account is stored in a Special Memorandum Account (SMA), which is a Specialised Investment Account.
An SMA is equivalent to the excess equity or buying power balance inside a margin account, which represents the sum of money required by an investor to purchase assets.
The SMA levels of margin accounts are calculated by brokerage firms at the conclusion of each trading day.

Customers can buy more securities for the margin account with money from their SMA. Withdrawals of money first from brokerage account and the execution of buy orders for stocks both result in a fall in the SMA balance.

A short account's market value decreases by $1 for every $1 of SMA to be created. The SMA balance might be $7,500 if somehow the market value decreases by $5,000.

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The complete question is mention below:

In a new margin account, a customer sells short $60,000 worth of ABC stock and deposits $30,000 to meet the Regulation T requirement. If the value of ABC falls to $55,000, the SMA balance in the account would be:

A) 10000.

B) 5000.

C) 7500.

D) 2500.