I. Listed below are items that are treated differently for accounting purposes than they are

for tax purposes. Indicate whether the items are permanent differences or temporary

differences. For temporary differences, indicate whether they will create deferred tax

assets or deferred tax liabilities. $(5$ points$)$

Premiums paid for life insurance policy on key

officer $($company is beneficiary.

Tax depreciation in excess of book depreciation.

Interest income from municipal bonds.

Warranty expense accrued in excess of warranty

costs paid.

Installment income recognized for book purposes

but not yet collected.