4 Q4: (6 marks) The records of Rony Company showed the following: Year 1: $-800,000 operating loss per books adjusted for permanent book/tax differences. $120,000 favorable Permanent book/tax differences. $90,000 unfavorable Temporary book/tax differences. Year 2: $900,000 net income per books adjusted for permanent book/tax differences. $100,000 favorable Permanent book/tax differences. Additional data Temporary book/tax differences of year 1 are reversed with the same amount in year 2. Tax rate is 35% and the company operating loss of Year 1 is carried forward. Required (show calculations) Compute tax benefit (negative tax benefit) for year 1. Compute taxable income for Year 2. . Compute tax expense for year 2. . Compute taxable expense for Year 2. Compute reduction in deferred tax asset or deferred tax liability from Year 1 to Year 2