As part of the initial investment, Ray Blake contributes equipment that had originally cost $118,100 and on which accumulated depreciation of $88,575 has been recorded. If similar equipment would cost $161,400 to replace and the partners agree on a valuation of $58,200 for the contributed equipment, what amount should be debited to the equipment account?

a. $118,100

b. $58,200

c. $161,400

d. $43,650