On January 1, 2015, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $350,000 in cash. The equipment had originally cost $330,000 but had a book value of only $255,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method Ackerman earned $450,000 in net income in 2015 (not including any investment income) while Brannigan reported $113,000. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $5,000 per year