This year, Sigma Inc. generated $627,000 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 Basis		Acc. Depr.*		Sale Price
Marketable securities	$	153,400	$	0	$	72,750
Production equipment		121,600		97,280		35,250
Business realty:
Land		168,750		0		190,000
Building		255,000		76,500		211,000

*Through date of sale.

Required:

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 $159,500 rather than $72,750.