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. Assume the partners specify an agreed-upon percentage in the initial partner capital, as follows: 50% to Patel, and 50% to Rao. If the bonus approach to partnership formation is used, Rao's initial capital balance will be: Select one: a. $400,000 b. $250,000 c. $325,000 d. $375.000 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, Rao's initial capital balance is: Select one: a. $410,000 b. $350,000 c. $400,000 d. $450,000 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 each partner's capital account is initially set equal to net assets invested at fair market value, the entry to record the partnership formation includes the following: Select one: a. A credit to Patels capital account for $150,000. b. A credit to Patel's capital account for $325,000. c. A credit to Rao's capital account for $400,000. d. Acredit to Rao's capital account for $500,000