The partnership of Mortin and Oscar is being dissolved, and the assets and equities at book value and fair value and the profit and loss sharing ratios at January 1, 2011, are as follows:

Mortin and Oscar agree to admit Trent into the partnership for a one-third interest. Trent invests $95,000 cash and a building to be used in the business with a book value to Trent of $100,000 and a fair value of $120,000.REQUIRED1. Prepare a balance sheet for the Mortin, Oscar, and Trent partnership on January 2, 2011, just after the admission of Trent, assuming that the assets are revalued and goodwill is recognized.2. Prepare a balance sheet for the Mortin, Oscar, and Trent partnership on January 2, 2011, after the admission of Trent, assuming that the assets are no trevalued.

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Book Value Fair Value $ 20,000 100,000 50,000 100,000 $270,000 $ 20,000 100,000 200,000 120,000 $440,000 Cash Accounts receivable-net Inventories Plant assets-net $ 50,000 $ 50,000 120,000 100,000 $270,000 Accounts payable Mortin capital (50%) Oscar capital (50%)