Four years ago, a self-employed taxpayer purchased office furniture for $30,000. During the current tax year, the

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Question:

Four years ago, a self-employed taxpayer purchased office furniture for $30,000. During the current tax year, the taxpayer sold the furniture for $37,000. At the time of the sale, the taxpayer's depreciation deductions totaled $20,700. What part of the gain is taxed as long-term capital gain?

A. $0

B. $7,000

C. $27,700

D. $20,700