please help I am stuck on it.someone has posted the same assignment but has not been answered.please help

ostec Times New... 12 A Aa 19 Spr V A Paste v ab X X A V 2v Av Paragrap 1. (counts as 2 questions) Describe the scenario about regarding the gain above. Use a made-up example to explain how the book gain was $54,000 but the taxable gain was $70,000 V1) Ta 2. What were the total tax to be paid on the gain (assuming 21 percent rate)? Ignore the other items. Show work 3. What is the additional tax due to the unfavorable book/tax difference on the gain? Show work. e] 4. Deferred compensation is typically an unfavorable book/tax difference. Explain why and how, preferably with a numeric example. 1 5. In the example of the table above, deferred compensation represents a temporary favorable difference. Explain why and how this could happen? Hint: The answer is very simple and relates to the very nature of temporary differences. 6. (each one counts as half a question) Provide a simple definition to the following terms: Depreciation expense Depreciation deduction Pre-tax GAAP income Taxable income Book basis Tax basis 7. Explain the difference between income tax expense and Form 1120 line 31 Total Tax (Hint: refer to the book income assignment where you prepared a financial accounting income statement) Page 2 of 2 204 words Focus 23 ostec Times New... 12 A Aa 19 Spr V A Paste v ab X X A V 2v Av Paragrap 1. (counts as 2 questions) Describe the scenario about regarding the gain above. Use a made-up example to explain how the book gain was $54,000 but the taxable gain was $70,000 V1) Ta 2. What were the total tax to be paid on the gain (assuming 21 percent rate)? Ignore the other items. Show work 3. What is the additional tax due to the unfavorable book/tax difference on the gain? Show work. e] 4. Deferred compensation is typically an unfavorable book/tax difference. Explain why and how, preferably with a numeric example. 1 5. In the example of the table above, deferred compensation represents a temporary favorable difference. Explain why and how this could happen? Hint: The answer is very simple and relates to the very nature of temporary differences. 6. (each one counts as half a question) Provide a simple definition to the following terms: Depreciation expense Depreciation deduction Pre-tax GAAP income Taxable income Book basis Tax basis 7. Explain the difference between income tax expense and Form 1120 line 31 Total Tax (Hint: refer to the book income assignment where you prepared a financial accounting income statement) Page 2 of 2 204 words Focus 23