Gain on intercompany transfers of depreciable noncurrent assets

Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2019, a parent company sold equipment to the subsidiary for $280,000. The equipment originally cost the parent $300,000, and accumulated depreciation through December 31, 2018 was $90,000. The parent depreciated the equipment assuming a 10-year useful life under the straight-line method and no salvage value. After the transfer, the subsidiary will depreciate the equipment for 7 years with no salvage value. Related to the transferred equipment, what is the net balance that will be reported in the December 31, 2019 consolidated balance sheet?

$160,000

$180,000

$210,000

$240,000

Note*** $160,000 was incorrect***