-Entry of a new partner under the goodwill method Elber, Folsom and Grand (EFG), Architects LLC will be admitting Hazel into their firm. Their capital accounts are $80,000 (Elber), $70,000 (Folsom) and $50,000 (Grand). Currently, their partnership agreement allocates profits and losses 40%-30%-30% in respective order (Elber-Folsom-Grand). The partners believe tangible assets have a market value in excess of book value in the amount of $50,000 net. The $50,000 is allocated as follows: Book Value Fair Market Value Supplies Accounts Receivable Equipment Building Accounts Payable Notes Payable $ 5,000 $ 24,000 $100,000 $240,000 $19.000 $150,000 $ 4,000 $ 15,000 $ 80,000 $320,000 $ 19,000 $150,000 Hazel will be admitted to the partnership by offering $75,000 cash for a 20% interest in capital and 20% interest in the profits. 1) Make the journal entry (if necessary) to reflect any adjustment to the book values to fair market values. If no entry is needed, you must state this. 2) Calculate the implied value of the firm based on Hazel's contribution and her percentage of capital and profit/loss interest. Show all calculations and circle your answer. 3) Calculate the amount of implied goodwill of the firm based on the work you have performed in steps 1 and 2. Show all calculations and circle your answer. 4) Make the journal entry (if necessary) to admit Hazel to the partnership. If no entry is needed, you must state this. 5) After admitting Hazel to the partnership, what will the percentages of profit/loss for each partner? Show all calculations and circle your answers. Elber Folsom Grand Hazel -Entry of a new partner under the goodwill method Elber, Folsom and Grand (EFG), Architects LLC will be admitting Hazel into their firm. Their capital accounts are $80,000 (Elber), $70,000 (Folsom) and $50,000 (Grand). Currently, their partnership agreement allocates profits and losses 40%-30%-30% in respective order (Elber-Folsom-Grand). The partners believe tangible assets have a market value in excess of book value in the amount of $50,000 net. The $50,000 is allocated as follows: Book Value Fair Market Value Supplies Accounts Receivable Equipment Building Accounts Payable Notes Payable $ 5,000 $ 24,000 $100,000 $240,000 $19.000 $150,000 $ 4,000 $ 15,000 $ 80,000 $320,000 $ 19,000 $150,000 Hazel will be admitted to the partnership by offering $75,000 cash for a 20% interest in capital and 20% interest in the profits. 1) Make the journal entry (if necessary) to reflect any adjustment to the book values to fair market values. If no entry is needed, you must state this. 2) Calculate the implied value of the firm based on Hazel's contribution and her percentage of capital and profit/loss interest. Show all calculations and circle your answer. 3) Calculate the amount of implied goodwill of the firm based on the work you have performed in steps 1 and 2. Show all calculations and circle your answer. 4) Make the journal entry (if necessary) to admit Hazel to the partnership. If no entry is needed, you must state this. 5) After admitting Hazel to the partnership, what will the percentages of profit/loss for each partner? Show all calculations and circle your answers. Elber Folsom Grand Hazel