As part of the initial investment, Ray Blake contributes equipment that had originally cost $110,400 and on which accumulated depreciation of $82,800 has been recorded. If similar equipment would cost $157,500 to replace and the partners agree on a valuation of $53,200 for the contributed equipment, what amount should be debited to the equipment account? a. $53,200 b. $157,500 c. $39,900 d. $110,400