Problem $11-47($LO $11-5)($Static$)$

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$[$The following information applies to the questions displayed below.$]$

Buckley, an individual, began business two years ago and has never sold a $1231$ asset. Buckley has owned each of the assets since they began the business. In the current year, Buckley sold the following business assets:

AssetOriginal CostAccumulated DepreciationGain or LossComputers$ $6,000$$ $2,000$$ $(3,000)$Machinery$10,0004,000(2,000)$Furniture$20,00012,0007,000$Building$100,00010,000(1,000)$

Assuming Buckley's marginal ordinary income tax rate is $32$ percent, answer the questions for the following alternative scenarios:

Problem $11-47$ Part$-$a $($Static$)$

Required:

a$1.$ What is the amount and character of Buckley's gains or losses for the current year?

a$2.$ Calculate Buckley's tax liability or tax savings for the year.