What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Inc. report in the following alternative
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What book-tax differences in year 1 and year 2 associated with its

capital gains and losses would ABD Inc. report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary.
a.
                  Year 1      Year 2
Capital gains....................$20,000.........$5,000
Capital losses......................8,000................0
b.
              Year 1            Year 2
Capital gains...........$ 8,000........................$5,000
Capital losses...........20,000..................................0
c.
            Year 1       Year 2
Capital gains...........$ 0...........$50,000
Capital losses..........25,000............30,000
d.
              Year 1      Year 2
Capital gains............$ 0........$40,000
Capital losses............25,000................0
e.
      Year 1      Years 2-5    Year 6
Capital gains....$ 0..........$ 0......$15,000
Capital losses....10,000............0...........................0
f.

Subject: Accounting, Business

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