Which of the Following Statements Is True Concerning a Comparison

Which of the following statements is true concerning a comparison of the bonus and goodwill methods of recording admission of a new partner by investment of new capital?

A) The goodwill method will typically result in a larger total partnership capital than the bonus method.
B) When the investment by the new partner is less than the new partner's share of the firm's total capital, using the bonus method the capital accounts of the existing partners will increase.
C) When the investment by the new partner is greater than the new partner's share of the firm's total capital, using the goodwill method the capital accounts of the existing partners will be reduced.
D) While the bonus method recognizes a new basis of asset valuation when a new partner invests assets in the partnership, the goodwill method does not.