In its first year, Firm KZ recognized $464,250 ordinary business Income and a $13,600 loss on the sale of an Investment asset. In Its second year, Firm KZ recognized $504,000 ordinary business Income, a $19,900 Section 1231 galn, and a $8,800 Section 1231 loss on two sales of operating assets. a. Compute KZ's book and taxable Income for its first year. b. Using a 21 percent tax rate, compute KZ's deferred tax asset or liability (Identify which) on its balance sheet on the last day of the year. c. Compute KZ's book and taxable income for its second year. d. Compute KZ's deferred tax asset or llablity (identify which) on its balance sheet on the last day of the second year Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A and B Req C and D c. Compute KZ's book and taxable income for its second year d. Compute KZ's deferred tax asset or liability (identify which) on its balance sheet on the last day of the second year. (R your intermediate computations to the nearest whole dollar amount.) $ C. Book income 514,200 Tax income 504,000 Deferred tax asset d S 714 Req C and D Req A and B In its first year, Firm KZ recognized $464,250 ordinary business Income and a $13,600 loss on the sale of an Investment asset. In Its second year, Firm KZ recognized $504,000 ordinary business Income, a $19,900 Section 1231 galn, and a $8,800 Section 1231 loss on two sales of operating assets. a. Compute KZ's book and taxable Income for its first year. b. Using a 21 percent tax rate, compute KZ's deferred tax asset or liability (Identify which) on its balance sheet on the last day of the year. c. Compute KZ's book and taxable income for its second year. d. Compute KZ's deferred tax asset or llablity (identify which) on its balance sheet on the last day of the second year Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A and B Req C and D c. Compute KZ's book and taxable income for its second year d. Compute KZ's deferred tax asset or liability (identify which) on its balance sheet on the last day of the second year. (R your intermediate computations to the nearest whole dollar amount.) $ C. Book income 514,200 Tax income 504,000 Deferred tax asset d S 714 Req C and D Req A and B