This year, Sigma Incorporated generated $635,000 income from its routine business operations. In addition, the corporati

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This Year Sigma Incorporated Generated 635 000 Income From Its Routine Business Operations In Addition The Corporati 1 (62.57 KiB) Viewed 15 times

This year, Sigma Incorporated generated $635,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* $ 0 Marketable securities Production equipment Business realty: $ 163,200 108,800 Sale Price $ 57,000 37,750 87,040 186,000 0 207,000 Land Building 273,000 81,900 279,000 *Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $170,400 rather than $57,000.