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Brandon, an individual, began business four years ago and has sold 1231 assets with $5,200 of losses within the last 5 years. Brandon owned each
Brandon, an individual, began business four years ago and has sold 1231 assets with $5,200 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated Asset Cost Depreciation Gain/Loss Machinery $30,400 Land 44,000 98,000 7,400$10,200 0 22,000 24,000 (9,000) Building Assuming Brandon's marginal ordinary income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax liability
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