What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Inc. report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. 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 tax depreciation on the equipment. In year 2, DEF recognized a capital loss of $2,000. a-1. What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Inc. report in the above scenario? Book-tax Differences Year 1 Year 2 a-2. Is it favorable or unfavorable? Favorable or Unfavorable Year 1 Year 2 a-3. Is it permanent or temporary? Temporary or Year 1 T Year 2 T Permanent emporary emporary