During the Current Year,USACo (A Domestic Corporation)sold Equipment to FrenchCo,a

During the current year,USACo (a domestic corporation) sold equipment to FrenchCo,a foreign corporation,for $350,000,with title passing to the buyer in France.USACo purchased the equipment several years ago for $100,000 and took $90,000 of depreciation deductions on the equipment,all of which were allocated to U.S.-source income.USACo's adjusted basis in the equipment is $10,000 on the date of sale.What is the source of the $340,000 gain on the sale of this equipment?

A) $250,000 U.S. source and $90,000 foreign source.
B) $250,000 foreign source and $90,000 U.S. source.
C) $340,000 foreign source.
D) $340,000 U.S. source.
E) None of the above.