Brandon, an individual, began business four years ago and has never sold a sect1231 asset Brandon owned each of the assets for sever year, Brandon sold the following business assets: Assuming Brandon's marginal ordinary Income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax liability $7, 000 ordinary income, $1, 000 sect1231 loss and $2, 100 tax liability. $6, 000 ordinary income and $2, 100 tax liability. $7, 000 sect1231 gain and $2, 450 tax liability. $7, 000 sect1231 gain and $1, 050 tax liability. None of the choices are correct