Fred's Foam Foundations (FFF) is a sole proprietorship that Fred started in 2012. Before the current year, FFF had not disposed of any property it owned. During the current year, FFF has the following gains and losses:

Casualty Loss on foam truck .................................. $ 3,200

Section 1231 gains .................................................. $ 9,400

Section 1231 losses ................................................. $ 3,000

What is the effect of these transactions on Fred's taxable income? Explain, and show the calculations.