Question: Help with requirement A please!! Answer is not $689,030 nor $664,660 nor $668,605 This year, Sigma Inc. generated $636,000 income from its routine business operations.
Help with requirement A please!!
Answer is not $689,030 nor $664,660 nor $668,605

This year, Sigma Inc. generated $636,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. Initial Acc. Sale Basis Depr. * Price 157,600 $ 0 $ 74,000 115,600 92,480 36,000 Marketable securities $ Production equipment Business realty: Land Building 235,500 263,000 0 78,900 241,750 218,000 *Through date of sale. 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 $174,000 rather than $74,000. Complete this question by entering your answers in the tabs below. Required A Required B 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. Taxable income $ 655,630 This year, Sigma Inc. generated $636,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. Initial Acc. Sale Basis Depr. * Price 157,600 $ 0 $ 74,000 115,600 92,480 36,000 Marketable securities $ Production equipment Business realty: Land Building 235,500 263,000 0 78,900 241,750 218,000 *Through date of sale. 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 $174,000 rather than $74,000. Complete this question by entering your answers in the tabs below. Required A Required B 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. Taxable income $ 655,630
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
