Allan and Ralph Are Partners

Multiple Choice

Allan and Ralph are partners.Allan has a capital balance of $89,000 and Ralph has a capital balance of $73,000.Carol invested $61,000 to acquire an ownership interest of $50,000.Which of the following is true of the impact of the transaction on the balance sheet?

A) Assets will increase and equity will decrease.
B) Both assets and equity will increase.
C) Assets will increase and the equity will remain unchanged.
D) Asset increases and the equity will remain unchanged.