Save & Exit Brandon, an individual, began business four years ago and has sold 1231 assets with $5,900 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Machinery Land Building Original Cost $31,800 58,000 126,000 Accumulated Depreciation $ 8,800 0 38,000 Gain/Loss $ 10,900 29,000 (23,000) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference. Multiple Choice $16,900 ordinary income and $5,408 tax liability $16,900 $1231 gain and $2,535 tax liability $2,200 $1231 gain, $14,700 ordinary income, and $5,034 tax liability $14,700 $1231 gain, $2,200 ordinary income, and $2,909 tax liability None of the choices are correct.