P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $300,615 for P1, $200,422 for P2, and $250,524 for P3. Among these partners on this date, the income sharing ratios are 42.85% for P1, 35.50% for P2, and the remainder for P3. On Jan 1, Year 6, P1 will retire from the partnership and will be paid $361,851 as a return of capital. In the journal entry to record the retirement, how much capital will be credited or debited to P3 on Jan 1 using the BONUS method?

a.

$23,198

b.

$24,358

c.

$23,778

d.

$22,618

e.

$22,038