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 Accum. 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 32%, what is the character of the gains and losses and what affect do they have on Suzanne's tax liability?