A-1 Company had pretax GAAP income of \(\$ 50,000\) for the tax year ended December \(31,2020\).

Required

a. Determine taxable income given the following separate situations.

1. Excess accelerated depreciation for tax purposes, \(\$ 5,000\)

2. Unrealized holding gain on securities accounted for under FV-NI, \(\$ 2,000\)

3. Unrealized holding loss on securities accounted for under FV-NI, \(\$ 2,000\)

4. Rental receipts received in advance, \(\$ 30,000\)

5. Litigation contingency accrual, \(\$ 10,000\)

6. Six-month prepaid rent deposit, \(\$ 12,000\)

b. Label each of the items in part \(a\) as one of the following:

1. GAAP revenue before taxable revenue 

2. Taxable revenue before GAAP revenue

3. GAAP expense before taxable expense 

4. Taxable expense before GAAP expense