On January 2,2010,Orange Corporation Purchased Equipment for $300,000 with an ADS

On January 2,2010,Orange Corporation purchased equipment for $300,000 with an ADS recovery period of 10 years and a MACRS useful life of 7 years.Section 179 was not elected.MACRS depreciation properly claimed on the asset,including depreciation in the year of sale,totaled $79,6019- The equipment was sold on July 1,2011,for $290,000.As a result of the sale,the adjustment to taxable income needed to arrive at current E & P is:

A) No adjustment is required.
B) Decrease $49,6019-
C) Increase $49,6019-
D) Decrease $79,6019-
E) None of the above.