Thane and Ulrich Are Partners in TU Consulting Services, Sharing

Thane and Ulrich are partners in TU Consulting Services, sharing partnership income in a 3:2 ratio. The partners want to reduce their involvement in the partnership by bringing in a third partner to take over most of the responsibilities. Volker purchases a 60 percent interest in the partnership by paying Thane and Ulrich a total of $360,000 for 60 percent of each of their interests. Volker will take control of partnership activities, with Thane and Ulrich providing support services as needed. The partnership balance sheet immediately prior to admission of Volker is as follows:
$\begin{array}{lrlr}\text {Assets}&&\text {Liabilities}\\\text { Cash } & \$ 50,000 & \text { Accounts payable } &\$ 80,000 \\\text { Supplies } & 120,000 & \text { Notes payable } & 200,000 \\\text { Equipment } & 460,000 & \begin{array}{l}\text { Total liabilities } \\\text { Capital }\end{array} & 280,000 \\& & \text { Capital-Thane } & 100,00 \\& & \text { Capital-Ulrich } & 250,00 \\ & & \text { Total capital } & 350,00 \\ \text { Total assets } &\$630,000 & \text { Total liabilities and capit al } & \$ 630,00 \\\end{array}$
Because there is a change in control, the partners decide that revaluation of partnership assets is appropriate. The supplies have a fair value of $150,000, and the equipment has a fair value of $520,000. There are no unrecorded identifiable assets.
Required
a. Record the addition of Volker to the partnership, using the implied goodwill method.
b. Present the partnership balance sheet immediately following Volker's admission.