Brandon, an individual, began business four years ago and has sold $1231 assets with $6,000 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 $ 32,000 $ 9,000 Land Building 60,000 130,000 e Gain/Loss $ 11,000 30,000 40,000 (25,000) 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 Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Rate 0% Married Filing Jointly $0-$80,000 $80,001-$496,600 Married Filing Separately $0-$40,000 $496,601+ $441,451- 15% 20% $40,001-$248,300 $248,301+ $53,601-$469,050 $469,051+ This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividend income last for this purpose) Single $0-$40,000 $40,001-$441,450 Head of Household $0-$53,600 Trusts and Estates $0-$2,650 $2,651 $13,150 $13,151+