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 generated from completing orders that involve printing on t-shirts and hats. Garrison also sold the following assets during 2019:

a.Unprinted t-shirts and hats (i.e. 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.

f.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/L = Ordinary+ Section 1231+ Capital

a)

b)

c)

d)

e)

f)