Gupta Company Made the Following Sales of Capital Assets This

Multiple Choice

Gupta Company made the following sales of capital assets this year. $\begin{array}{llr}&\text { Tax Basis}&\text { Sale Price }\\ \text { Asset 1 } &\$60,000&\$47,800\\ \text { Asset 2} &112,500&116,000\\ \text { Asset 3 } &13,000&22,400\end{array}$
What is the effect of the three sales on Gupta's taxable income?

A) $700 increase
B) $12,900 increase
C) No effect
D) None of these choices are correct