borary unfavorable Question 2 2 pts In 2020, Laurel Oak Co. recognized a loss of $8,000 on the sale of a capital asset. The company also (in 2020) recognized a $10,000 gain on the sale of a section 1231 asset. Laurel Oak had previously deducted $14,000 of depreciation on the section 1231 asset. What is the amount and nature of the book tax difference reported by Laurel Oak related to its asset sales in 2020? O $8,000 temporary unfavorable O $8,000 temporary, favorable $2,000 temporary, favorable $8,000 permanent, unfavorable Question 3 2 pts Which of the following statements is false concerning net operating losses (NOLs)? Following the CARES Act, NOLS may reduce only 50 percent of taxable income in a carryforward year Following the CARES Act, NOLS incurred in 2018, 2019, or 2020 may also be carried back 5 years In the year an NOL arises, an unfavorable temporary difference is reported Unused NOLs may be carried forward indefinitely