Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Accumulated Sales Price Depreciation $55,400 26,400 Asset Cost Building Equipment $233,400 $203,400 83,400 151,400 Lily's taxable income before these transactions is $193,900. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Description Amount Taxable income Tax liability Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as $1231 assets. The first is machinery and will generate a $12,500 $1231 loss on the sale. The second is land that will generate a $9,900 $1231 gain on the sale. Aruna's ordinary marginal tax rate is 32 percent. (Input all amounts as positive values.) a. Assuming she sells both assets in December of year 1 (the current year), what effect will the sales have on Aruna's tax liability? Aruna's tax will by b. Assuming that Aruna sells the land in December of year 1 and the machinery in January of year 2, what effect will the sales have on Aruna's tax liability for each year? Aruna's tax in year 1 by Aruna's tax in year 2 by