Casper and Dold decide to form a partnership. Casper contributes $500,000 in cash. Dold contributes buildings and equipment with a fair market value of $800,000, subject to a mortgage of $100,000, which the partnership assumes.

Assume the partners specify an agreed-upon percentage in the initial partner capital, as follows: 50% to Casper, and 50% to Dold. If thebonus approach to partnership formationis used, Dold's initial capital balance will be:

A.$700,000

B.$650,000

C.$625,000

D.$600,000