Bagley invests personally owned equipment, which originally cost $220,000 and has accumulated depreciation of $60,000 in the Bagley and Eggers partnership. Both partners agree that the fair value of the equipment was $120,000. The entry made by the partnership to record Bagley's investment should be

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Equipment 120,000 Loss on Purchase of Equipment Accumulated Depreciation-Equipment Bagley, Capital 40,000 60,000 220,000 Equipment 120,000 Bagley, Capital 120,000 Equipment 220,000 Accumulated Depreciation-Equipment 60,000 Equipment 160,000 Bagley, Capital 160,000