Brand on, an individual, began business four year ago and has sold §1231 assets with $5,000 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets:

Asset Original Cost Accumulated

Machinery $30,000 $7,000 $10,000

Land 40,000 0 20,000

Building 90,000 20,000 (5,000)

Assuming Brandon's marginal ordinary income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax liability?