When a new partner is admitted by purchasing an interest from one or more of the existing partners, the total assets and the total owners' equity of the partnership are $\_\_\_\_\_.$

a$.$ increased

b$.$ decreased

c$.$ not affected

d$.$ None of these are correct

abcd

$2.$The journal entry required to transfer capital of Partners A and B to Partner C would include $\_\_\_\_\_.$

a$.$ a debit to Partner C$,$ Capital

b$.$ a credit to Partner C$,$ Capital

c$.$ credits to Partner A$,$ Capital, and Partner B$,$ Capital

d$.$ None of these are correct

abcd

$3.$Before a new partner is admitted, the balances of a partnership's asset accounts should be stated at $\_\_\_\_\_.$

a$.$ book values

b$.$ current market values

c$.$ their current account balances

d$.$ None of these are correct

abcd

$4.$If the partnership purchases the withdrawing partner's interest, the assets and the owners' equity of the partnership are reduced by $\_\_\_\_\_.$

a$.$ the book value

b$.$ the market value

c$.$ the purchase price

d$.$ None of these are correct