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 goodwill approach to partnership formation is used, the initial entry to record the formation of the partnership will recognize goodwill of: Select one: a. $400,000 b. $250,000 c. $100,000 d. $150.000 The capital balances of the DEF Partnership are as follows: The partners' income sharing ratio is: Danielson, 25\%; Eklund, 45\%; Forsberg, 30%. Gustafson joins the partnership by contributing $140,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. If the goodwill method is used to record the admission of Gustafson, goodwill will be recorded on the books of the partnership in the amount of: Select one: a. $135,000 b. $28,000 c. $275.000 d. $70.000 The ADF Partnership consists of three partners, Ansel, Davis, and Findley. The partnership agreement provides for annual salaries of $30,000 to Ansel, $40,000 to Davis, and $75,000 to Findley. Residual profits are shared in a 2:1:2 ratio. Salaries are to be fully implemented. Partnership income for the year is $100,000. Findley's share of income is Select one: a. $84,000. b. $66.000. c. $75,000 d. $57,000