Brandon, an individual, began business four years ago and has sold $1231 assets with $5,100 of losses within the last five years. Brandon owned each e the assets for several years. In the current year, Brandon sold the following business assets: Original Cost Asset Machinery Accumulated Depreciation Land Building $ 30,200 42,000 94,000 $ 7,200 0 22,000 Gain/Loss $ 10,100 21,000 (7,000) 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 $24,100 ordinary income and $7,712 tax liability $24,100 $1231 gain and $3,615 tax liability