Suzanne, an individual, began business four years ago and has never sold a 1231 asset. Suzanne owned each of the assets for several years. In the current year, Suzanne sold the following business assets:

Asset	Original Cost	Accumulated Depreciation	Gain/Loss
Machinery	$12,000	$7,000	$6,000
Furniture	10,000	2,000	(3,000)
Building	90,000	20,000	15,000

Assuming Suzanne's marginal ordinary income tax rate is 35 percent, what is the character of the gains and losses and what affect do they have on Suzanne's tax liability?