Brandon, an individual, began business four years ago and has sold 51231 assets with $5,200 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 Machinery Land Building Original Cost $30,400 44,000 98,000 Accumulated Depreciation $ 7,400 Gain/Loss $10,200 22,000 (9,000) 24,000 Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use Dividends and Capital Gains Tax Rates for reference Multiple Choice O $23,200 ordinary Income, $7.424 tax liability. $23.200 31231 gain and $3.480 tax liability o $10.600 31231 gain, $12,600 ordinary Income, and $5.622 tax liability. O $12.600 $1231 gain, $10,600 ordinary Income, and $5.282 tax liability. None of the choices are correct. Ashburn reported a $105.050 net $1231 gain in year 6. Assuming Ashburn reported $59,000 of nonrecaptured $1231 losses during years 1-5, what amount of Ashburn's net $1231 gain for year 6, if any, is treated as ordinary income? Multiple Choice o SO O $46,050 O $59.000 $105,050 d O None of the choices are correct. Koch traded machine 1 for machine 2 when the fair market value of both machines was $50.000. Koch originally purchased machine 1 for $75.600 and machine 1's adjusted basis was $40,300 at the time of the exchange. Machine 2's seller purchased it for $64700 and machine 2's adjusted basis was $55,300 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange? Multiple Choice O $40.300. O $50,000 O $55,300. O $75,600 O None of the choices are correct