Brandy sold a rental house that she owned for $150,000. Brandy bought the house four years ago for $140,000 and has claimed $25,000 of depreciation expense. Brandy's ordinary marginal tax bracket is 32% and her capital gains tax rate is 15%. What is the amount and character of Brandy's gain or loss? What is the effect of the sale on her tax liability?

Amount of ordinary income:

Amount of unrecaptured 1250 gain:

Amount of 1231 gain:

Total effect of the sale on her tax liability: