Subject: accounting 0Required information[The following information applies to the questions displayed below.]In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCCreported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donationis a qualified contribution.b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contributioncarryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is thedifference favorable or unfavorable? Is it permanent or temporary?2022Answer is complete but not entirely correct.Favorable orUnfavorableFavorableBook-taxDifference$ 100,000Temporary orPermanentTemporary

Taxable income is the amount of income calculated to measure the amount of tax an individual,…

b. Assume that in 2022, OCC did not make any charitable donations and that it is allowed to deduct its full charitable contribution carryover, if any, from 2021. What book-tax difference associated with the charitable contributions will OCC report in 2022? Is the difference favorable or unfavorable? Is it permanent or temporary?