This year, Sigma Inc. generated $655,500 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 Acc. Deprartment Sale Price
Marketable securities $164,200 $0 $88,250
Production equipment 104,500 83,600 45,750
Business realty:
Land 187,500 0 203,250
Building 249,000 74,700 234,000

Required:
a. Compute Sigma's taxable Income assuming that It used the straight-line method to calculate depreciation on the building and has no non-recaptured Section 1231 losses.
b. Recompute taxable income assuming that Sigma sold the securities for $169,200 rather than $88,250.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.