This year, Sigma Inc. generated $636,000 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. Depr.* Sale Price Marketable securities $157,600 $0 $ 74,000 Production equipment 115,600 92,480 36,000 Business realty: Land 235,500 0 241,750 Building 263,000 78,900 218,000 *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 $174,000 rather than $74,000. Note: I have part B correct with $705,430. It's part A I am having trouble with

On June 30, Pronghorn Corp discontinued its operations in Mexico. During the year, the operating income was $270,000 before taxes. On September 1, Pronghorn disposed of the Mexico facility at a pretax loss of $670,000. The applicable tax rate is 30%. Show the discontinued operations section of Pronghorn’s income statement. PRONGHORN CORPPartial Income Statement select an opening section name                                                                enter an income statement item                                                              $enter a dollar amount enter an income statement item                                                              $enter a dollar amount     $enter a total dollar amount

The owners of a company are planning to sell the business to new interests. The cumulative net earnings for the past 4 years were P6,000,000 including casualty loss of P200,000. The current value of net assets of the company was P16,000,000. Goodwill is determined by capitalizing average earnings at 8%. What is the amount of goodwill? a. P1.450.000 b. P1.550.000 c. P2,215.000 d. P3.375.000

Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet:   Assets     Accounts receivable   $  60,000 Inventory   100,000 Equipment $  90,000   Accumulated depreciation   (50,000) 40,000       Land and buildings $300,000   Accumulated depreciation (100,000) 200,000 Goodwill       60,000      Total assets   $460,000       Liabilities and Stockholders' Equity     Bonds payable   $  80,000 Common stock, $10 par   200,000 Paid-in capital in excess of par   100,000 Retained earnings       80,000      Total liabilities and equity   $460,000   Mans has secured the following fair values of Eagle's accounts:   Inventory $130,000 Equipment 60,000 Land and buildings 260,000 Bonds payable 60,000   Acquisition costs were $20,000.   Required:   Record the entry for the purchase of…