Brandon, an individual, began business four years ago and has sold $1231 assets with $5,000 of losses within the last five years Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Cost Accumulated Depreciation Asset Machinery $ 30,000 $ 7,000 Gain/Loss $ 10,000 Land 0 20,000 Building 40,000 90,000 20,000 (5,000) 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