TB MC Qu. 12-72 (Algo) Farmer and Taylor formed a partnership... Farmer and Taylor formed a partnership with capital contributions of $275,000 and $325,000, respectively. Their partnership agreement calls for Farmer to receive a $100,000 per year salary allowance. The remaining Income or loss is to be divided equally. Assuming net loss for the current year is $30,000, the journal entry to allocate the net loss is: Multiple Choice Debit Taylor, Capital 565,000: Credit Income Summary, $30,000. Credit Farmer, Capital, $35,000 Debit Income Summary, $30.000; Credit Farmer, Capital, $15,000; Credit Taylor, Capital, $15,000 Debit Income Summary, $30.000, Debit Taylor, Capital, $35,000; Credit Farmer, Capital, 565,000. Debit Income Summary, 530,000; Credit Taylor, Capital, $15,000 Credit Farmer, Capital $15.000 Debit Income Summary $30,000; Debit Farmer, Capital, $35.000; Credit Taylor, Capital $65,000