Pinecove Company made the following sales of capital assets this year. Tax Basis Sale Price Asset 1 $ 60,000 $ 47,800 Asset 2 112,500 116,000 Asset 3 13,000 22,400 What is the effect of the three sales on Pinecove's taxable income? O $700 increase O $12,900 increase O $12,200 decrease O None of the choices are correct