What booktax differences in year 1 and year 2 associated with its capital gains and losses would DEF Incorporated report in the following alternative scenarios? Identify each booktax 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 16-43 Part a (Static) a. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. In year 1, it also recognized a $30,000 gain on equipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $20,000. DEF had deducted $40,000 of depreciation on the equipment. In year 2, DEF recognized a capital loss of $2,000.

Required information Problem 16-43 (LO 16-2) (Static) [The following information applies to the questions displayed below.] What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF 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. roblem 16-43 Part a (Static) In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. In year 1, it also recognized a $30,000 gain on quipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $20,000. DEF had educted $40,000 of depreciation on the equipment. In year 2 , DEF recognized a capital loss of $2,000