Lilac Corporation is an accrual method taxpayer. Lilac's corporate effective tax rate was 35% in 2023 and

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Lilac Corporation is an accrual method taxpayer. Lilac's corporate effective tax rate was 35% in 2023 and 21% in 2024 (due to the change in the law regarding corporate tax rates). A. Lilac Corporation made a contribution to the US government of a certain oil field. As a result, Lilac received a special deduction of $1 million in 2023 (and received full benefit for the deduction due to sufficient taxable income in 2023). In 2024, the government determined the oil field did not fit their needs, and therefore returned the oil field to Lilac. Under the tax benefit rule, Lilac included the $1 million in income in 2024. What tax liability/benefit resulted from income/deduction in 2023 and 2024? Please explain. B. Lilac Corporation was required to recognize $2 million of income in 2023 based upon the Claim of Right Doctrine. In 2024, Lilac Corporation was entitled to a $2 million deduction for the amount. Although there was an appearance of a right to the income in 2023, it was later determined that the income was not Lilac Corporations. What tax liability/benefit resulted from the income/deduction in 2023 and 2024? Please explain.