P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31,...
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P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $275,991 for P1, $383,361 for P2, and $203,158 for P3. Among these partners on this date, the income sharing ratios are 40.93% for P1, 37.42% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $162,272 in XYZ Inc for a one-fifth (20%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the BONUS method? a. $194,709 b. $215,204 c. $199,832 d. $210,080 e. $204,956
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