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In its first year, Firm KZ recognized $477,000 ordinary business Income and a $14,450 loss on the sale of an Investment asset. In its second

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In its first year, Firm KZ recognized $477,000 ordinary business Income and a $14,450 loss on the sale of an Investment asset. In its second year, Firm KZ recognized $583,000 ordinary business Income, a $22,750 Section 1231 gain, and a $8,840 Section 1231 loss on two sales of operating assets. Required: 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 liability (identify which) on its balance sheet on the last day of the second year Complete this question by entering your answers in the tabs below. Req A and B Reg C and D 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 day of the year. (Round your final answers to the nearest whole dollar amount.) Amount a Book income Tax income a b ReqC and D > In its first year, Firm KZ recognized $477,000 ordinary business Income and a $14,450 loss on the sale of an Investment asset. In its second year, Firm KZ recognized $583,000 ordinary business Income, a $22,750 Section 1231 gain, and a $8,840 Section 1231 loss on two sales of operating assets. Required: 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 liability (identify which) on its balance sheet on the last day of the second year Complete this question by entering your answers in the tabs below. Reg A and B Reg 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. your intermediate computations and final answer to nearest whole dollar amount.) Amount Book income Tax income d

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