Brandon, an individual, began business four years ago and has sold 1231 assets with $5,250 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:

Asset Original Cost Accumulated Depreciation Gain/Loss

Machinery $30,000 $7,000 $10,000

Land40,000 0 20,000

Building90,000 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?Usedividends and capital gains tax ratesfor reference.