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 $312,927 for P1, $434,673 for P2, and $230,347 for P3. Among these partners on this date, the income sharing ratios are 43.81% for P1, 34.54% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $183,989 in XYZ Inc for a one-eighth (12.5%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P1 on Jan 1 using the ASSET REVALUATION method? a. $132,405 b. $125,615 c. $139,195 d. $135,800 e. $129,010
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