Abby Sold Her Unincorporated Business Which Consisted of Equipment and Goodwill.The

Abby sold her unincorporated business which consisted of equipment and goodwill.The equipment had an original cost of $150,000 and Abby had claimed $90,000 in depreciation (adjusted basis = $60,000) .Abby had no basis in the goodwill.The sales price for the business was $280,000,with $120,000 for the equipment and $160,000 for the goodwill.The buyer agreed to pay $70,000 on June 30,2011,and $210,000 (plus interest at the Federal rate) in two years.Abby's gain to be reported in 2011 (exclusive of interest) is:

A) $40,000.
B) $55,000.
C) $60,000.
D) $100,000.
E) None, because she had not recovered her cost as of the end of 2011.