This year, Sigma, Incorporated generated $636,000 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	Accumulated Depreciation*	Sale Price
Marketable securities	$ 157,600	$ 0	$ 74,000
Production equipment	115,600	92,480	36,000
Business realty:
Land	235,500	0	241,750
Building	263,000	78,900	218,000

*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 $174,000 rather than $74,000.