Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to the partnership. The following information regarding the asset to be contributed by Minor is available:

Historical cost of the asset	$	78,000
Accumulated depreciation on the asset	$	41,000
Note payable secured by the asset*	$	20,000
Agreed-upon market value of the asset	$	46,000

Based on this information, Harvey's beginning equity balance in the partnership will be:

Multiple Choice

• $26,000

• $37,000

• $46,000

• $20,000

• $78,000