W Owned and Operated a Printing Shop as a Sole

Multiple Choice

W owned and operated a printing shop as a sole proprietorship for two decades before selling it to Z.Which statement is true?

A) W should report the total amount realized, less his total adjusted basis in the business, as a capital gain or loss.
B) W should report the total amount realized, less his total adjusted basis in the business, as an addition to or a deduction from net income.
C) W should proportionally allocate the total sales price to each category of property represented among the assets of the business in order to determine the amount of gain or loss for each category.
D) W and Z should agree on a value for each category of property from which W can subtract the respective adjusted bases in order to determine the amount of gain or loss for each category.