Wallace and Simpson formed a partnership. Wallace contributed $$74,000,$ and Simpson contributed $$54,000.$ Their partnership agreement calls for the income $($loss$)$ division to be based on the ratio of capital investments. The partnership had income of $$160,000$ in its first year of operation. When the Income Summary is closed, the journal entry to allocate partner income is: $($Do not round intermediate calculations.$)$

Debit Income Summary $$160,000$; credit Wallace, Capital $$80,000$; credit Simpson, Capital $$80,000.$

Debit Income Summary $$160,000$; credit Wallace, Capital $$92,500$; credit Simpson, Capital $$67,500.$

Debit Cash $$160,000$; credit Wallace, Capital $$92,500$; credit Simpson, Capital $$67,500.$

Debit Wallace, Capital $$92,500$; debit Simpson, Capital $$67,500$; credit Cash $$160,000.$