Nix Corporation Sold Equipment for $40,000

Nix Corporation sold equipment for $40,000. The equipment had an original cost of $120,000 and accumulated depreciation of $60,000. Ignoriing the tax effect, as a result of the sale

A) net income will increase $40,000.
B) net income will increase $20,000.
C) net income will decrease $20,000.
D) net income will decrease $40,000.