Brandon, an individual, began business four years ago and has sold 1231 assets with $6,000 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:

Brandon, dn lndividua business assets: began business our years ago and has sold 123 assets with $6,000 o losses within the last 5 years. Brandon owned each o the asseis or several yedrs. In ule current year Brandon sold te ollowing 32,000o 60,000 130,000 Machinery $9,000 $11,000 Building 25,000) Assuming Brandon's marginal ordinary Income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax lablity? $15,000 91231 gain, $1,000 ordinary income, and $2 600 tax lability None of the choices are correct $1000 51231 gain, $15.000 ordinary income, and $5.100 tax liablity $16,000 ordinary income, $5,600 tax liability. $16,000 s1231 gain and S2.400 tax liability. O O