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There is an application A. It uses the GPL license.
There is another application B that takes all of A's code and improvises it. In its repo, both GPL and LGPL license can be found.
We are building an application C, which is open source and uses all of application A's code, much like B did. However, we take the enhancements from B and credit it duly. What license should be given to C?

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The license which applies to the combination of A and B depends on the precise versions of the GPL and LGPL involved. The enhancements present in C, when they take the form of new source files, can in theory be placed (by the copyright holders) under any GPL-compatible license. The license applicable to the whole of C will be whichever version of the GPL applies to the combination (with potentially the option to pick a later one).

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