Required information

Problem $11-50($LO $11-5)($Static$)$

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

Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as $$1231$ assets. The first is machinery and will generate a $$10,000$$$1231$ loss on the sale. The second is land that will generate a $$7,000$$$1231$ gain on the sale. Aruna's ordinary marginal tax rate is $32$ percent.

Note: Input all amounts as positive values.

Problem $11-50$ Part$-$a $($Static$)$

a$.$ Assuming she sells both assets in December of year $1($the current year$),$ what effect will the sales have on Aruna's tax liability?

Aruna's tax will by