As part of the initial investment, Ray Blake contributes equipment that had originally cost $118,300 and on which accumulated depreciation of $88,725 has been recorded. If similar equipment would cost $145,100 to replace and the partners agree on a valuation of $42,300 for the contributed equipment, what amount should be debited to the equipment account? Oa. $145.100 Ob. $118,300 Oc. $42,300 Od. $31,725