Olsen and Katch organized the OK Partnership on 1/1/01. The following entries were made into their capital accounts during 01: Debits Credits 20,000 5,000 5,000 10/1 Katch 40,000 10,000 10,000 10,000 The partnership agreement called for the following in the allocation of partnership profits and losses: Salaries of $48,000 and $36,000 would be allocated to Olsen and Katch, respectively Interest of 8% on average capital balances will be allocated Katch will receive a bonus of 10% on all partnership billings in excess of$300,000 Any remaining profits/losses will be allocated 60/40 to Olsen and Katch, respectively Required (account for each situation independently): Determine the distribution of partnership net income. Assume the following priority of allocation: interest, bonus, salaries, then remaining assuming partnership income of $85,000; partnership billings amounted to $400,000 a. b. Determine e the distribution of partnership net income of $165,000 on billings of $400,000. No specific priority is given to any of the allocation criteria