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Note: Please no copy from the textbook

In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the sale of an investment asset. In its second year, Firm KZ recognized $500,800 ordinary business income and a $19,300 Section 1231 gain and a $7,400 Section 1231 loss on two sales of operating assets. a. Compute KZ's book and tax income for its first year. b. Using a 34 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 tax income for its second year. deferred tax asset or ability ( dentify which) on its balance sheet on the last day of the year. In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the sale of an investment asset. In its second year, Firm KZ recognized $500,800 ordinary business income and a $19,300 Section 1231 gain and a $7,400 Section 1231 loss on two sales of operating assets. a. Compute KZ's book and tax income for its first year. b. Using a 34 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 tax income for its second year. deferred tax asset or ability ( dentify which) on its balance sheet on the last day of the year