11. The taxpayer owns a sole proprietorship and sells only 1 piece of equipment during the year. The equipment was purchased 3 years ago for $90,000. The equipment was sold on September 1, 2020 for $70,000. The combination of Section 179 expense and MACRS depreciation taken on the equipment through the date of sale was $40,000. Which of the following would be a correct entry on the tax return based solely on this information?

a. $40,000 on Form 4797, Part III, Line 23 (for Property A).

b. $20,000 on Form 4797, Part II, Line 13.

c. ($3,000) on Form 1040, Line 6.

d. $20,000 on Schedule D, Part II, Line 11.