This year, Sigma Incorporated generated $681,750 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	$ 166,800	$ 0	$ 66,250
Production equipment	114,000	91,200	52,750
Business realty:
Land	195,000	0	221,750
Building	242,000	72,600	239,000

*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 $174,800 rather than $66,250.