The capital balances of the DEF Partnership are as follows: Danielson $180,000; Eklund 95,000; Forsberg 150,000 Total $425,000

The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Assume the partnerships identifiable net assets are carried at amounts approximating fair value.

Case A: Assume Gustafson joins the partnership by contributing $125,000 to the partnership for a 20% interest in partnership capital.

Case B: Now assume Gustafson paid $90,000 for a 20% interest in partnership capital.

Instruction: For each case, please use Goodwill method to analyze the problem. Prepare the Statement of Partners Capital Balances, as well as the related journals prepared for the partnership.