This year, Sigma Inc. generated $612,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months.

a. Compute Sigma€™s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no non-recaptured Section 1231 losses.
b. Re-compute taxable income assuming that Sigma sold the securities for $150,000 rather than $64,000.

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Initial Basis Acc. Depr Sale Price Marketable securities Production equipment Business realty: $144,000 93,000 64,000 30,000 -0 $76,000 Land Building 165,000 200,000 180,000 210,000 58,300