Final answer:
The bonus method of recording a new partner's investment in a partnership adjusts the new partner's capital account without revaluing existing assets, and can result in a bonus that changes existing partners' capital balances.
Step-by-step explanation:
The question concerns the bonus method of recording a new partner's investment in a partnership. When a new partner is introduced, the bonus method dictates that the assets of the partnership are not revalued and the new partner's initial capital balance is adjusted to reflect any bonus to the existing partners or to the new partner herself. A key point in this method is that the book value of the partnership prior to the new partner's arrival remains unchanged. If the recorded assets are properly valued, then after the entry of the new partner, the book value of the new partnership is indeed the total of the old partnership's book value plus the investment made by the new partner. It's important to note that this could result in a bonus that either increases or decreases the existing partners' capital balances, depending on the circumstances of the investment.