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 Cost Asset Accumulated Depreciation Gain/Loss Machinery Computers Building $ 30,000 10,000 90,000 $ 7,000 $ 10,000 (2,000) (2,000) 6,000 20,000 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 $7,000 ordinary income, $1,000 1231 loss, and $1,920 tax liability $6,000 ordinary income and $1,920 tax liability $7,000 1231 gain and $2,240 tax liability $7,000 1231 gain and $1,050 tax liability None of the choices are correct.