What book-tax differences in year 1 and year 2 associated with its capital gains and losses would
Question:
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 1Year 2
Capital gains....................$20,000.........$5,000
Capital losses......................8,000................0
b.
Year 1Year 2
Capital gains...........$ 8,000........................$5,000
Capital losses...........20,000..................................0
c.
Year 1 Year 2
Capital gains................$ 0...........$50,000
Capital losses..........25,000............30,000
d.
Year 1Year 2
Capital gains.................$ 0........$40,000
Capital losses............25,000................0
e.
Year 1Years 2-5Year 6
Capital gains...........$ 0..........$ 0.................$15,000
Capital losses....10,000............0...........................0
f.
Year 1Years 2 - 6Year 7
Capital gains.................$ 0....................$ 0............$15,000
Capital losses............10,000.....................0.....................0
Step by Step Answer:
a No booktax differences ineither year b In year 1 there is a 12000 temporary unfavorableadjustment ...View the full answer
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
