Suzanne, an Individual, Began Business Four Years Ago and Has

Essay

Suzanne, an individual, began business four years ago and has never sold a §1231 asset.Suzanne owned each of the assets for several years.In the current year, Suzanne sold the following business assets:
$$\begin{array} { l r r r r } & & { \text { Accurmulated } } & \\\text { Asset } & \text { Original Cost } & \text { Depreciation } & { \text { Gair/Loss } } \\\text { Machirzery } & \$ 12,000 & \$7 , 000 & \$ 6,000 \\\text { Funiture } & 10,000& 2,000 & ( 3,000 ) \\\text { Building } & 90,000 & 20,000 & 15,000\end{array}$$ Assuming Suzanne's marginal ordinary income tax rate is 32 percent, what is the character of the gains and losses and what affect do they have on Suzanne's tax liability?