When an Existing Partner Sells His Interest to Another Party

When an existing partner sells his interest to another party in a personal transaction:

A) it is considered a transaction between the partnership and the new party.
B) the old partnership will continue functioning, since the partner is replaced by another party without diluting the old partnership.
C) the journal entry simply debits the withdrawing partner's capital account and credits the new partner's capital.
D) the equity and assets in the balance sheet increase by the same amount.

Correct Answer:

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