This year, Sigma Inc. generated $635,000 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	$	163,200	$	0	$	57,000
Production equipment		108,800		87,040		37,750
Business realty:
Land		186,000		0		207,000
Building		273,000		81,900		279,000

*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 $170,400 rather than $57,000