Included among Gleason Company's assets is land purchased for $50,000 and equipment for $100,000. After using the equipment for three years, Gleason transferred the equipment to a newly created subsidiary, Bromiley Company, along with the land plus cash of $25,000 in exchange for 20,000 shares of Bromiley's $5 par value common stock. At the date of transfer the land and equipment had fair values of $72,000 and $65,000, respectively. Gleason had been depreciating the equipment on a straight-line basis over ten years with no salvage value.