Penny, an individual, began business four years ago and has…

Penny, an individual, began business four years ago and has never sold a §1231 asset. Penny owned each of the assets for several years. In the current year, Penny sold the following business assets: Asset Original Cost Accumulated Depreciation Amount Realized (Proceeds) Machinery 12,000 7,000 13,000 Furniture 10,000 2,000 6,000 Building 100,000 80,000 30,000 Assuming Penny’s marginal ordinary income tax rate is 30 percent, what is the character of the gains and losses and what affect do they have on Penny’s tax liability? (i.e. Analyze each transactions separately and then calculate the tax liability for the transactions taken together)?