As part of the initial investment, Ray Blake contributes equipment that had originally cost $108,500 and on which accumulated depreciation of $81,375 has been recorded. If similar equipment would cost $163,200 to replace and the partners agree on a valuation of $50,300 for the contributed equipment, what amount should be debited to the equipment account? a. $163,200 b. $37,725 c. $108,500 d. $50,300