a$.$ Permanent Difference c$.$ Temp. Difference $>>$ DTL b$.$ Temp. Difference $>>$ DTA $1.$ Rent is collected in advance from a tenant. Rent is taxable when received. $2.$ Warranty costs accrued for financials, not deductible until paid for taxes $3.$ Interest revenue is recorded on municipal bonds. $4.$ Installment sales recognized for financials, but taxed when the cash is rec'd. $5.$ A loss contingency expensed for financials, payment expected in three yrs$.6.$ Bad debt exp. estimated for financials, but not deducted for taxes until W$/$O$.7.$ Company paid an EPA fine for violation of environmental regulations.