E$18\mathrm{.}6($LO $1,2)($Identify Temporary or Permanent Differences$)$ Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes.

Instructions

For each item below, indicate whether it involves:

A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset.

A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability.

A permanent difference.purposes.j$.$ qquad Estimated losses on pending lawsuits and claims are accrued for books. These losses are taxdeductible in the period$($s$)$ when the related liabilities are settled.k$.$ qquad Expenses on stock options are accrued for financial reporting purposes.