Wallace and Simpson formed a partnership with Wallace contributing $78,000 and Simpson contributing $58,000. Thelr partnership agreement calls for the Income (loss) divislon to be based on the ratio of capital Investments. The partnershlp had Income of $170,000 for its first year of operation. When the Income Summary is dlosed, the journal entry to allocate partner income is: O Debit Income Summery $170,000; credit Wallace, Capital $85.000; credit Simpson, Capital $85,000. O Debit Wallace, Capital $85.000, debit Simpson, Capital $85.000, credit Income Summary $170.o00. O Debit Income Summary $170,000; credit Wallace, Capital $97,500, credit Simpson, Capital $72.500 O Debit Cash $170.000; credit Wallace, Capital $97.500; credit Simpson, Capital $72.500 O Debit Wallace, Capital $97,500; debit Simpson, Capital $78,000; credit Cash $170,000