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This year, Sigma Incorporated generated $633,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held
This year, Sigma Incorporated 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: Accumulated Initial Basis Depreciation* $ 183,200 108,400 86,720 Sale Price $ 85,250 35,500 Marketable securities Production equipment Business realty: Land Building 222,750 287,000 233, 250 298,000 86, 100 *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 $186,400 rather than $85,250. 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 Required A Required B Recompute taxable income assuming that Sigma sold the securities for $186,400 rather than $85,250. Taxable income
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