Question: Taxpayer sells an asset for $200,000. Assume Taxpayer has owned the asset for several years, the original cost was $150,000, and Taxpayer has claimed total depreciation deductions of $90,000. Assume also that Taxpayer incorrectly computed depreciation over the years and should have claimed depreciation deductions of $110,000. Assuming that Taxpayer will not file amended returns to correct any prior depreciation errors, how should the Taxpayer report the sale?