In its first year, Firm KZ recognized $482.250 ordinary business income and a $13,850 loss on the sale of an investment

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In Its First Year Firm Kz Recognized 482 250 Ordinary Business Income And A 13 850 Loss On The Sale Of An Investment 1 (68.21 KiB) Viewed 21 times

In its first year, Firm KZ recognized $482.250 ordinary business income and a $13,850 loss on the sale of an investment asset. In its second year, Firm KZ recognized $564,000 ordinary business income, a $20,700 Section 1231 gain, and a $8,400 Section 1231 loss on two sales of operating assets. Required: a. Compute KZ's book and taxable income for its first year. b. Using a 21 percent tax rate, compute KZ's deferred tax asset or liability (identify which) on its balance sheet on the last day of the year. c. Compute KZ's book and taxable income for its second year. 0 d. Compute KZ's deferred tax asset or liability (identify which) on its palance sheet on the last day of the second year. Req A and B Req Cand D 5 6 c. Compute KZ's book and taxable income for its second year. 7 B d. Compute KZ's deferred tax asset or liability (identify which) on its balance sheet on the last day of the second year. (Round your intermediate computations and final answer to nearest whole dollar amount.) 3 D Amount 1 C. Book income C. Tax income d. Deferred tax asset 1 2 B 4 2 B 4 5 S S S 576,300 564,000 216 X L