This year, the corporation, EHK Inc. sold the following capital assets (held for more than 1 year):

	Tax Basis	Sale Price
Asset 1	$ 60,000	$ 68,100
Asset 2	250,000	263,500
Asset 3	50,000	22,400

What effect do the three sales have on EHK's taxable income this year?

Group of answer choices

No effect

$21,600 increase

$12,900 increase

$6,000 decrease