Andrew, an individual, began business four years ago and has never sold a 1231 asset. Andrew own of the assets for several years. In the current year, Andrew sold the following business assets: Accumulated Depreciation Gain/Loss Asset Original Cost Machinery $ 22,000 $ 7,000 $ 9,000 Furniture 20,000 2,000 6,000 Building 90,000 20,000 (5,000) Assuming Andrew's marginal ordinary income tax rate is 30 percent, what is the character of the gai losses and what affect do they have on Andrew's tax liability?