Question: 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,

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 the bonus approach to partnership formation is used, Dolds initial capital balance will be:

A.

$600,000
B.

$650,000
C.

$625,000
D.

$700,000

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