This year, Sigma Inc. generated $662,250 income from its routine business operations. In addition, the corporation sold the followingassets, all of which were held for more than 12 months:InitialSalePriceO$ 75,00041,750Acc.BasisDepr.*$ 149,600 $103,600Marketable securitiesProduction equipmentBusiness realty:LandBuilding82,880237,000270,000247,250210,50081,000*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 hasno nonrecaptured Section 1231 losses.b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000.

Assets held for more than one year are termed long-term capital assets. Such assets are taxed at…

This year, Sigma Inc. 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: Initial Basis $ 149,600 $ 103,600 Acc. Sale Depr. es 75,000 41,750 Price Marketable securities Production equipment Business realty: 82,880 237,000 278,e00 Land 247,250 210,500 Building 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.

This year, Sigma Inc. 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: Initial Basis $ 149,600 $ 103,600 Acc. Sale Depr. es 75,000 41,750 Price Marketable securities Production equipment Business realty: 82,880 237,000 278,e00 Land 247,250 210,500 Building 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.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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