Mel, a partner in the Mel-Jahaziel Partnership, has a 30% participation in partnership profits and losses.

Mels capital account has a net decrease of P1,200,000 during the calendar year 20x4. During 20x4, Mel withdrew P2,600,000 (charged against his capital account) and contributed property valued at P500,000 to the partnership. What was the net income of the Mel-Jahaziel Partnership for year 20x4?

A. P3,000,000 C. P 7,000,000

B. P4,666,667 D. P11,000,000