Amber and Brenda have decided to form a partnership. Amber is to contribute $120,000 cash to the partnership for a 60% share of the capital, and Brenda will contribute $30,000 for a 40% share.

1. Using the bonus method, what will be each partner's capital balance?

2. Using the goodwill method, what will be each partner's capital balance? (Assume that Ambers contribution represents 60% of the partnerships true value.)