Which of the Following Is True When a New Partner

Which of the following is true when a new partner is admitted by purchasing an existing partner's interest?

A) Only the transfer of cash from the new partner to the existing partner is recorded.
B) Admission of the partner affects only the amount of total assets.
C) Admission of the partner affects the total equity amount.
D) The only journal entry the partnership records is the transfer of partner's capital.

Correct Answer:

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