chUrl=https%253A%252F%252Flms.mheducati In its first year, Firm KZ recognized $453,500 ordinary business income and a $15,700 loss on the sale of an investment asset. In its second year, Firm KZ recognized $527,000 ordinary business income, a $22,950 Section 1231 gain, and a $8,420 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. d. Compute KZ's deferred tax asset or liability (identify which) on its balance sheet on the last day of the second year. Complete this question by entering your answers in the tabs below. ces Req A and B Req C and D 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. Note: Round your final answers to the nearest whole dollar amount. a Book income a Tax income b. Type here to search Amount Req A and B Req C and D > M