A buyer purchased a property for $100,000 and made $20,000 worth of capital improvements to property. Several years later, the owner sells the property for $150,000. The sale would result in a:

A. $30,000 capital gain.
B. $20,000 loss.
C. $70,000 capital gain.
D. $50,000 capital gain.

Answer: A. $30,000 capital gain.