This year, Sigma Inc. generated $633,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months.

	InitialBasis		Acc.Depr.*		Sale Price
Marketable securities	$	183,200	$	0	$	85,250
Production equipment		108,400		86,720		35,500
Business realty:
Land		222,750		0		233,250
Building		287,000		86,100		298,000

*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 $186,400 rather than $85,250.