TF Qu. 01 All corporate deductions... All corporate deductions are deductions from AGI. True or False True False Required information Problem 5-39 (LO 5-2) (The following information applies to the questions displayed below.) art 2 of 2 What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Inc. report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. ints Problem 5-39 Part b Print b. In year 1. DEF recognized a loss of $15,000 on land that it had held for investment. It also recognized a $20,000 gain on equipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $30,000. DEF had deducted $15.000 of tax depreciation on the equipment. There were no capital transactions in year 2. (For all requirements, leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect.) Book-tax Difference $ (10,000) Favorable or Unfavorable Unfavorable Temporary or Permanent Temporary Year 1 Year 2 TF Qu. 02 A current year temporary book-tax difference... A current year temporary book-tax difference is unfavorable if it causes taxable income to decrease relative to book income. True or False True False