What book$$tax differences in year $1$ and year $2$ associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book$$tax difference as favorable or unfavorable and as permanent or temporary.

Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect.

Problem $16-42$ Part d $($Static$)$

d$.$

Year $1$ Year $2$

Capital gains $ $0$ $ $40,000$

Capital losses $25,0000$