If the partnership agreement clearly states that a new partner's goodwill will be shared equally among the old partners, what treatment should be followed?

Correct answer: It will be shared equally

The governing principle is that the partnership agreement, or a specific instruction in the question, determines the treatment when it expressly provides a method. Although goodwill compensation on admission is commonly adjusted in the sacrificing ratio, that general rule cannot override a clear agreement requiring equal sharing among the old partners. Thus option A is correct: the amount is divided equally, subject to the exact accounting entry required by the facts. Option B is only the usual default when no special instruction exists. Option C uses the wrong basis, and D ignores an adjustment that the agreement specifically requires.