P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $362,175 for P1, $503,089 for P2, and $266,599 for P3. Among these partners on this date, the income sharing ratios are 47.65% for P1, 30.70% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $212,945 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.

$162,398

b.

$153,851

c.

$170,945

d.

$158,124

e.

$166,672