Farmer and Taylor formed a partnership with capital contributions of $265,000 and $315,000, respectively. Their partnership agreement calls for Farmer to receive a $83,000 per year salary. The remaining income or loss is to be divided equally. Assuming net income for the current year is $213,000, the journal entry to allocate net income is:

Multiple Choice

A - Debit Income Summary, $213,000; Credit Farmer, Capital, $106,140; Credit Taylor, Capital, $28,860.

B - Debit Income Summary, $213,000; Credit Farmer, Capital, $106,500; Credit Taylor, Capital, $106,500.

C - Debit Income Summary, $213,000; Credit Taylor, Capital, $148,000; Credit Farmer, Capital, $65,000.

D - Debit Income Summary, $213,000; Credit Farmer, Capital, $182,000; Credit Taylor, Capital, $31,000.

E - Debit Income Summary, $213,000; Credit Farmer, Capital, $148,000; Credit Taylor, Capital, $65,000.