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:

Asset	Original Cost	Accumulated Depreciation	Gain/Loss
Machinery	$ 30,000	$ 7,000	$ 10,000
Land	40,000	0	20,000
Building	90,000	20,000	(5,000)

Assuming Brandons marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandons tax liability?

Group of answer choices

None of the choices are correct.

$13,000 1231 gain, $12,000 ordinary income, and $5,790 tax liability.

$18,000 1231 gain, $7,000 ordinary income, and $4,940 tax liability.

$25,000 1231 gain and $3,750 tax liability.

$12,000 1231 gain, $13,000 ordinary income, and $5,960 tax liability.

$25,000 ordinary income and $8,000 tax liability.

There is one more column that is cut off. it is gain/loss with the nunbers being -in order

10,000

20,000

(5000)