LeBlanc Ltd. acquired some office furniture at the end of 20X1 and sold it to its parent company, Teak Co., for $360,000, a $60,000 profit. The furniture will be depreciated over 12 years, using the straight-line method. At the beginning of 20X5, Teak sold the furniture to a third party for $310,000. In preparing Teak's 20X5 consolidated financial statements, what adjustment, if any, should be made to the $40,000 gain on the sale of equipment?