Gupta Company made the following sales of capital assets this year. Tax BasisSale PriceAsset 1$60,000 $47,800 Asset 2 112,500 116,000 Asset 3 13,000 22,400 What is the effect of the three sales on Gupta's taxable income?
A. $12,900 increase
B. No effect
C. $700 increase
D. None of the choices are correct
Answer: C
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