Question: For each given scenario, address the following: 1 . Determine whether it represents a temporary or permanent tax difference. 2 . Explain whether it will

For each given scenario, address the following: 1. Determine whether it represents a temporary or permanent tax difference. 2. Explain whether it will lead to future taxable or deductible amounts. 3. Identify whether it results in a deferred tax asset (DTA) or deferred tax liability (DTL) Scenario 1:
A company expenses estimated warranty costs (covering a three-year period) when incurred for accounting purposes.
Scenario 2:
A company has different depreciation bases for accounting and tax purposes due to a business combination. The combination is treated as a purchase for accounting purposes but as a tax-free exchange for income tax purposes.
Scenario 3:
A company accounts for a \(30\%\) equity investment using the equity method. The investee pays dividends equal to \(10\%\) of its annual earnings.

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