Mulan owns 90% of China. On January 1, 2016, China Company sold equipment costing $100,000 to China Company for $160,000. The equipment has a 10 year life. Both firms use Straight-Line Depreciation. During 2016 and 2017, China reported Net Incomes of $200,000 and $300,000, respectively. Based on this information, how much investment income should China record in 2017?

$240,000

$270,000

$275,400

None of the above