D) Jackson, an individual, began business four years ago and has never sold a 1231 asset. Jackson owned each of the assets for several years. In the current year, Jackson sold the following business assets:AssetOriginal CostOriginal CostAccumulated DepreciationAccumulated DepreciationGain/LossGain/LossGain/LossGain/LossMachinery$12,000$7,000$6,000Furniture10,0002,000(3,000))Building90,00020,00015,000Assuming Jackson's marginal ordinary income tax rate is 32 percent, what is the character of the gains and losses and what affect do they have on Jackson's tax liability?