Problem 08-25 (Algal [LO 8-7. 8-10] In its first year. Firm K2 recognized $467250 ordinary business income and a $15850 loss on the sale of an investment asset. In its second year. Firm KZ recognized $530000 ordinary business income, a $21500 Section 1231 gain. and a $8,200 Section 1231 loss on two sales of operating assets. Required: a. Compute KZ's book and taxable income for its first year. in. 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 yeat c. Compute KZis book and taxable income for its second year. d. Compute KZis deferred tax asset or liability [identify which] on its balance sheet on the last day ofthe second year. Complete this question by entering your answers in the tabs below