If a partnership is undergoing a transformation to a corporation, which of the following is a result? (a) Assets and liabilities are adjusted to fair value. (b) The net assets are distributed to the...

(a) Assets and liabilities are adjusted to fair value.

(b) The net assets are distributed to the partners in their profit and loss ratio.

(c) The partners receive stock in the new corporation.

(d) Both (a) and (c) are correct.