Characterization of Gains and Losses on the sale of Business-use Assets Garrison Printing Company, a sole proprietorship owned by Jim Garrison (a calendar-year taxpayer, cash-basis taxpayer) has 2019 before tax income of $600,000 generate from completing orders that involve printing on i-shirts and hats. Garrison also sold the following assets during 2019 a. Unprinted t-shirts and hats (i.c. inventory) with a cost basis of $85,000 were sold for $120.000 b. Stocks (held longer than 12 months) with a cost basis of $25,000 were sold for $10,000. c. A printing machine (held longer than 12 months) with a cost basis of $15,000 and accumulated tax depreciation of $8.000 was sold for $10,000. d. An embroidery machine (held longer than 12 months) with a cost basis of $6,000 and accumulated tax depreciation of $3,000 was sold for $4,000. e. A storage building (placed in service in 2006) with a cost basis of $30,000 and accumulated tax depreciation of $8,000 was sold for $35.000. 1. Furniture (held longer than 12 months) with a cost basis of $7.000 and accumulated tax depreciation of $4,000 was sold for $10,000. Garrison has unrecaptured net Section 1231 losses of $3.500 during the previous 5 years. Determine the amount AND character of Garrison's 2019 taxable gain loss generated from these transactions. Calculation G - Ordinary + Section Capital 1231+