14.

Which of the following best characterizes the bonus method of recording a new partner's investment in a

partnership?

a.

Net assets of the previous partnership are not revalued.

b. The new

partner's

initial capital balance is equal to his or her investment.

c.

Assuming that recorded assets are properly valued, the book value of the new partnership is equal to the

book value of the new partnership and the investment of the new partner.

d.

The bonus always r

esults in an increase to the previous partners' capital balances.