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 05-42 Part a (Static) Capital gains Capital losses Year 1 $ 20,000 8,000 Year 2 $ 5,000 Book-tax- Difference Favorable or Unfavorable Temporary or Permanent Year 1 Year 2