A company sold a fully depreciated asset for $160,000, which resulted in an increase in taxes payable of $45,000. This transaction should be reported as A. A gain of $115,000 in the determination of income from continuing operations before income taxes on the income statement. B. An adjustment of $160,000 to prior periods' depreciation on the statement of retained earnings. C. A gain of $160,000 in the determination of income from continuing operations before income taxes on the income statement. OD. An extraordinary gain of $115,000 on the income statement