A piece of equipment has depreciated to $3000, but it sells for $8,000 at an auction. Which of the following consequences is MOST accrate?

A. The firm must pay taxes on the selling price of $8,000

B. The firm can write-off the equipment as a charitable donation since the selling price is less than one-tenth of the original cost of the equipment.

C. The firm must pay taxes on the selling price less the remaining depreciation costs, $5,000

D. The firm can document the sale as a capital loss