When a New Person Is Admitted into a Partnership by Investing

When a new person is admitted into a partnership by investing assets in the partnership at book value, the new person:

A) pays cash directly to the existing partners in amounts equal to their respective capital balances.
B) transfers assets to the partnership which are equal in value to the existing partners' capital balances (no bonus) .
C) pays cash directly to existing partners based on the market value of the partnership's assets.
D) transfers assets to the partnership which are equal in value to the market value of the partnership's assets.