This year, Sigma Inc. generated $626,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months.

	InitialBasis		Acc.Depr.*		Sale Price
Marketable securities	$	175,200	$	0	$	74,500
Production equipment		104,000		83,200		30,400
Business realty:
Land		216,350		0		228,250
Building		284,000		85,200		233,500

*Through date of sale.

1. Compute Sigmas taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses.
2. Recompute taxable income assuming that Sigma sold the securities for $182,800 rather than $74,500.