This year, Sigma, Incorporated generated $$677,250$ income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than $12$ months:

$\backslash$table$[[,$Accumulated$],[$Marketable securities$,$Initial Basis,Depreciation$*,$Sale Price,$],[$Production equipment,$$162,000,$$$0,$$$83,750,],[$Business realty:,$95,200,76,160,35,200,],[$Land$,,,,],[$Building$,238,500,0,246,750,],[,240,000,72,000,230,500,]]$

$*$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 $$172,000$ rather than $$83,750.$

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