Partnership of Dunder, Mifflin, and Scott has existed for a number of years. At the present time the partners have the following capital balances as well as the indicated profit and loss percentages: Partner Dunder Mifflin Scott Capital Balances $ 60,000 15,000 25,000 $ 100,000 P & L Ratio 50% 30% 20% Scott decides to withdraw from the partnership, but Dunder and Mifflin plan to continue operating the business. As per the original partnership agreement, a final settlement distribution for any withdrawing partner is computed based on the following specific provisions: * An indpendent expert will appraise the business to detemine its estimated fair values * Any individual who leaves the partnership will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the previous valuation. The allocation of unrecorded gains and losses is based ont he normal profit and loss ratio. Following Scott's decision to withdraw, the partnerships property is immediately appriased. Total fair value is estimated at $210,000, According to the valuation, land held by the partnership is currently worth $75,000 more than its original cost and $35,000 is attributed to goodwill. Step 7: Prepare the necessary journal entries to record this transaction using the BONUS METHOD (4pts) Step 8: Prepare the necessary journal entries to record this transaction using the GOODWILL METHOD (12 pts) Partnership of Dunder, Mifflin, and Scott has existed for a number of years. At the present time the partners have the following capital balances as well as the indicated profit and loss percentages: Partner Dunder Mifflin Scott Capital Balances $ 60,000 15,000 25,000 $ 100,000 P & L Ratio 50% 30% 20% Scott decides to withdraw from the partnership, but Dunder and Mifflin plan to continue operating the business. As per the original partnership agreement, a final settlement distribution for any withdrawing partner is computed based on the following specific provisions: * An indpendent expert will appraise the business to detemine its estimated fair values * Any individual who leaves the partnership will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the previous valuation. The allocation of unrecorded gains and losses is based ont he normal profit and loss ratio. Following Scott's decision to withdraw, the partnerships property is immediately appriased. Total fair value is estimated at $210,000, According to the valuation, land held by the partnership is currently worth $75,000 more than its original cost and $35,000 is attributed to goodwill. Step 7: Prepare the necessary journal entries to record this transaction using the BONUS METHOD (4pts) Step 8: Prepare the necessary journal entries to record this transaction using the GOODWILL METHOD (12 pts)