Which of the following statements is true? I. In the formation of a partnership, assets are recorded at the lower of cost (book value) or fair market value. II. When a new partner is admitted to an existing partnership by "bonus," the new partner's capital account is always credited fr the amount of the investment III. According to the ABC partnership agreement, each partner is to receive a yearly salary of $50,000. During Year 1, the partnership reported a net loss of $20,000. In the year-end distribution, a salary of $50,000 should still be allocated to each partner. A. I and II only. B. II and Ill only. OC Ill only. D.I only.