Small Corp

Small Corp. and Big Corp. are equal partners in Medium Enterprises. The partnership has a net worth of $210,000, split 50/50 between the two corporations. Size Co. has been asked to join the partnership in a manner that will not have a tax consequence to the existing partners. When the transaction is complete, all three partners will have an equal interest. To accomplish this structural change, Size Co. must

A) contribute $105,000 to the partnership treasury.
B) contribute $210,000 to the partnership treasury.
C) pay $70,000 to each of the partners.
D) pay $105,000 to each of the partners.