When a new partner is admitted to a partnership and the new partner receives a capital credit greater than the tangible assets contributed which of the following explains the difference?

1. The old partners goodwill is being recognized

2. The new partners goodwill is being recognized

A. Both 1 and 2

B. Either 1 or 2

C.2 only

D. 1 only

Transferable interest of a partner includes all of the following except

A. The right receive any liquidating distribution

B. The right to receive distributions

C. The partner share of the profits and losses of the partnership

D.The authority to transact any of the partnerships business operations