Badger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000; the partnership assumes responsibility for a $125,000 note secured by a mortgage on the property. Fox invests $100,000 in cash and equipment that has a market value of $75,000. For the partnership, the amounts recorded for total assets and for total capital account are: Total assets $525,000; total capital $400,000. Total assets $400,000; total capital $400,000. Total assets $650,000; total capital $650,000. Total assets $400,000; total capital $525,000. Total assets $525,000; total capital $525,000. A capital deficiency means that: The partnership has a loss. The partnership has more liabilities than assets. At least one partner has a debit balance in his/her capital account. At least one partner has a credit balance in his/her capital account. The partnership has been sold at a loss