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  3. brandon, an individual, began business four years

Brandon, an individual, began business four years ago and has never sold a $1231 asset....

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Accounting

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Brandon, an individual, began business four years ago and has never sold a $1231 asset. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Accumulated As set Cost Depreciation Gain/Loss 014316) Machinery $30,000 $7,000 $10,000 Computers 10,000 Building 90,000 6,000 (2,000) 20,000(2,000) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Multiple Choice $6,000 ordinary income and $1,920 tax Siablity $7,000 ordinary income, $1,000 51231 loss and $1,920 tax lability 57000 1231 gein nd 050 tax t None of the choices are correct

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