During the tax year, a business has sold the five assets described below. Calculate the tax liability on the assets. The firm pays a 40% tax rate on ordinary income. Please show how you calculated.

Assets Sold

Asset Purchase Price Sale Price

1 $10,000 $12,000

2 $50,000 $40,000

3 $37,500 $50,000

4. $3,000. $3,500

5. $15,000 $12,000