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:

1. Unprinted t-shirts and hats (i.e. inventory) with a cost basis of $85,000 were sold for $120,000.
2. Stocks (held longer than 12 months) with a cost basis of $25,000 were sold for $10,000.
3. 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.
4. 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.
5. 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.
6. 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 Garrisons 2019 taxable gain/loss generated from these transactions.

	Calculation	G/L =	Ordinary +	Section 1231+	Capital
a)
b)
c)
d)
e)
f)