Brandon, an individual, began business four years ago and has sold 1231 assets with $5,300 of losses within the last 5 years. Brandon wned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated Cost preciation Gain/Loss Machinery 30,600 7,600 10,300 Land 0 23,000 26,000 (11,000) Building 102,00e Assuming Brandon's marginal ordinary income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax liability? s9.400 1231 gain. S12.900 ordinary income, and $5.925 tax liability