What booktax 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 booktax difference as favorable or unfavorable and as permanent or temporary.

A.

		Year 1		Year 2
Capital gains	$	20,000	$	5,000
Capital losses		8,000		0
Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2 b. Year 1 Year 2 Capital gains $ 8,000 $ 5,000 Capital losses 20,000 0
Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2 c. Year 1 Year 2 Capital gains $ 0 $ 50,000 Capital losses 25,000 30,000 Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2 d. Year 1 Year 2 Capital gains $ 0 $ 40,000 Capital losses 25,000 0 Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2 e. Answer for year 6 only. Years Year 1 2 - 5 Year 6 Capital gains $ 0 $ 0 $ 15,000 Capital losses 10,000 0 0
Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2
f. Answer for year 7 only. Years Year 1 2 - 6 Year 7 Capital gains $ 0 $ 0 $ 15,000 Capital losses 10,000 0 0 Book tax difference Favorable or Unfav Temp or permanent Year 1 Year 2