Patel and Rao decide to form a partnership.Patel contributes $300,000 in cash.Rao contributes buildings and equipment with a fair market value of $500,000, subject to a mortgage of $150,000, 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

a.A credit to Patel's 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 $500,000

d.A credit to Rao's capital account for $350,000