As Part of the Initial Investment, Ray Blake Contributes Equipment

Multiple Choice

As part of the initial investment, Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account?

A) $29,000
B) $150,000
C) $125,000
D) $100,000