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

a.

Year 1Year 2

Capital gains....................$20,000.........$5,000

Capital losses......................8,000................0

b.

Year 1Year 2

Capital gains...........$ 8,000........................$5,000

Capital losses...........20,000..................................0

c.

Year 1Year 2

Capital gains...........$0...........$50,000

Capital losses..........25,000............30,000

d.

Year 1Year 2

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

Capital losses............25,000................0

e.

Year 1Years 2-5Year 6

Capital gains....$ 0..........$ 0......$15,000

Capital losses....10,000............0...........................0

f.