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Patel and Rao decide to form a partnership. Patel contributes $ 2 5 0 , 0 0 0 in cash. Rao contributes buildings and equipment

Patel and Rao decide to form a partnership. Patel contributes $250,000 in cash. Rao contributes buildings and equipment with a fair market value of $500,000, subject to a mortgage of $100,000, which the partnership assumes.
If the goodwill approach to partnership formation is used, Raos initial capital balance is:

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