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

Brandon, an individual, began business four years ago and has never sold a §1231 asset. Bra6n4d) on owned each of the assets for several years. In the current year, Brandon sold the followingbusiness assets: Assuming Brandon's marginal ordinary income tax rate is 35 percent, what effect do the gains and losses have on Brandon's tax liability?

A) $7,000 ordinary income, $1,000 §1231 loss and $2,100 tax liability.
B) $7,000 §1231 gain and $1,050 tax liability.
C) $6,000 ordinary income and $2,100 tax liability.
D) $7,000 §1231 gain and $2,450 tax liability.
E) None of the choices are correct.