P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $362,175 for P1, $241,467 for P2, and $301,829 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, P1 will retire from the partnership and will be paid $435,951 as a return of capital. In the journal entry to record the retirement, how much capital will be credited or debited to P2 on Jan 1 using the BONUS method?

a.

$42,183

b.

$41,102

c.

$44,347

d.

$43,265

e.

$40,020

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