Olsen and Katch organized the OK Partnership on 1/1/2013. The following entries were made into their capital accounts during 2013: 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 weighted 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): a. 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 b. Determine 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