Indicate whether each transaction will result in a deferred tax liability, a deferred tax asset or a permanent difference. ROK company collects $40,000 of rental income in advance of December 31, 2014. The entire amount is reported as taxable on the 2014 tax return. ROK uses the accrual method of accounting for GAAP and the cash method of accounting for IRS. The company earns $10,000 on account from a sale on December 31, 2014. ROK company paid a $2,000 fine for violating a county ordinance. ROK company bought an asset for $50,000 and will depreciate it over 5 years for accounting purposes. The entire amount will be expensed for IRS purposes. ROK Company recorded estimated warranty expense on the financial statements of $30,000. Only $10,000 was deductible for IRS purposes. ROK Company received $100,000 if life insurance proceeds from the death of a key officer of the corporation.