2. Fox & Matthews, CPAs, LLP, a forensic accounting consulting firm formed by Betty Fox and Angela Matthews, needed to be dissolved due to a court order. Fox & Matthews provided you with the following information for its 2019 calendar year operations:

Electricity expense.$2,000

Consulting revenues.$420,000

Utilities expense.$7,000

Fixed Assets .$210,000

Current Assets .$85,000

Current Liabilities.. $60,000

Inventory... $10,000

Total Assets...$295,000

A Certified Valuation Analyst (CVA) provided the following fair market values for Fox & Matthews, CPAs, LLP: the Fixed Assets and the Current Assets are valued at $280,000 and $90,000, respectively. Current Liabilities increased by $5,000. The profit sharing ratio is 3: 2 for the owners.

The partners disputed over the amounts presented by their accountants. As a result, you have been engaged by Fox & Matthews as a forensic accountant to compute the following for negotiations and a possible court case (litigation). You are required to compute:

A) The amount of goodwill at the time of dissolution (Show your work below)

B) The amount of money to be distributed to each partner including any goodwill using the profit sharing ratio given above (Show your work below)

C) Net income from operations for the 2019 calendar year (Show your work below)

D) Which business valuation approach (method) did you use and why? Explain