This year, Sigma Incorporated generated $686,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Basis Accumulated Depreciation* Sale Price Marketable securities $ 144,400 $ 0 $ 72,950 Production equipment 101,200 80,960 41,000 Business realty: Land 215,250 0 218,250 Building 288,000 86,400 263,000 *Through date of sale. Required: 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. Recompute taxable income assuming that Sigma sold the securities for $154,800 rather than $72,950
This year, Sigma Incorporated generated $686,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Basis
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