Indicate whether each of the items below will result in either a temporary difference that will result in a deferred tax asset, a temporary difference that will result in a deferred tax liability, or a permanent difference by placing either an A, B, or C on the line provided.

A = Temporary difference that will result in a deferred tax asset

B = Temporary difference that will result in a deferred tax liability

C = Permanent difference

1. Interest is received on an investment in tax-exempt municipal bonds.
2. Depreciation expense for tax purposes exceeded the depreciation expense taken for accounting (book) purposes.
3. Cash was collected in advance for work to be performed in a later period. This cash was taxable when received.
4. A dividend-received deduction was received by the business on investments in equity securities.
5. Bad debts are estimated and expensed on the income statement, but no bad debts were written off during the year.