199. The following information is available on a depreciable asset owned by Mutual Savings Bank:

Purchase date	July 1, Year 1
Purchase price	$102,600
Salvage value	$10,200
Useful life	12 years
Depreciation method	straight-line

The asset's book value is $87,200 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $5,200 rather than the original estimate of $10,200. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

• $2,180.00

• $1,795.00

• $1,983.04

• $2,050.00

• $4,100.00

200. Wallace and Simpson formed a partnership with Wallace contributing $64,000 and Simpson contributing $44,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. The partnership had income of $135,000 for its first year of operation. When the Income Summary is closed, the journal entry to allocate partner income is: (Do not round intermediate calculations.)

• Debit Wallace, Capital $80,000; debit Simpson, Capital $64,000; credit Cash $135,000.

• Debit Cash $135,000; credit Wallace, Capital $80,000; credit Simpson, Capital $55,000.

• Debit Wallace, Capital $67,500; debit Simpson, Capital $67,500; credit Income Summary $135,000.

• Debit Income Summary $135,000; credit Wallace, Capital $80,000; credit Simpson, Capital $55,000.

• Debit Income Summary $135,000; credit Wallace, Capital $67,500; credit Simpson, Capital $67,500.