Ali, Beck and Chris are equal partners in a partnership business engaged in shampoos. The capital accounts balances on 1 January 2017 were as follows: Ali $ 14000 Beck $ 13000 Chris $ 8500 No separate current accounts are kept and accounts are closed on 31st December each year. On 30 June 2017, Chris wanted to start his own business and he retired from the partnership. Ali and Beck agreed to continue to be equal partners. It was also agreed among the partners that Chris will be paid the balance of his capital account on 31 December 2017. Goodwill was valued at $18000 and certain fixed assets were revalued by $6000 above the book value. It was agreed to write off goodwill in capital accounts only. The net profit for the year ended 31 December 2017 was $36000 and was earned uniformly throughout the year. Drawings during the year 2015 were: Ali $ 4500 Beck $ 3000 Chris $ 1500 On 1 January 2018, Ken was admitted as a partner. He paid in $12000 cash as capital together with $4000 for his share of partnership goodwill. The new profit sharing ratio was: Ali Beck Ken 2/5 2/5 1/5 Net loss for the year 2018 was $12000 and each partner withdrew $600 during the year. On 2 Jan 2019, the partnership was dissolved and the net assets were sold for $ 53,000. REQUIRED (a) Prepare the Capital accounts for 1 January 2017 until 2 January 2019. (b) Discuss the treatment of goodwill with respect to retiring partners and incoming partners