During the current year, hawk corporation sold equipment for $600,000 (adjusted basis of $360,000). the equipment was purchased a few years ago for $760,000 and $400,000 in macrs deductions have been claimed. ads depreciation would have been $300,000. as a result of the sale, the adjustment to taxable income needed to determine current e & p is:
a. no adjustment is required.
b. subtract $100,000.
c. add $100,000.
d. add $80,000.
e. none of the above