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This year, Sigma Incorporated generated $662,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held
This year, Sigma Incorporated generated $662,250 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 $ 149,600 $ 0 103,600 82,880 Sale Price $ 75,000 41,750 Marketable securities Production equipment Business realty: Land Building 237,000 270,000 247,250 210,500 81,000 *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 $159,200 rather than $75,000. Complete this question by entering your answers in the tabs below. 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
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