Question: Listed below are ten separate situations. For each item indicate whether the di erence is ( 1 ) temporary, creating a deferred tax asset or

Listed below are ten separate situations. For each item indicate whether the dierence is (1) temporary, creating a deferred tax asset or a deferred tax liability or (2) permanent.
Item
1. Pension fund contributions are less than pension expense for the current year, resulting in a pension liability on the companys balance sheet.
2. Dividend revenue recognized for accounting while a portion is deductible for taxes (dividends received deduction).
3. Estimated warranty costs: accrual basis for accounting and cash basis for income tax.
4. Fines expensed for accounting but not deductible for tax purposes.
5. Straight-line depreciation for accounting and accelerated depreciation for income tax.
6. Unrealized gain on investments: FV-NI recognized for accounting, but gain recognized only on disposal of the asset for income tax.
7. Rent revenue collected in advance: accrual basis for accounting, cash basis for income tax.
8. Unrealized loss on investments: FV-NI recognized for accounting, but loss recognized only on disposal of the asset for income tax.
9. Probable and estimable litigation contingency: accrual basis for accounting and cash basis for income tax.
10. Interest received on investments in municipal bonds is not taxable.
Required
ItemDeferred Income Tax 1Answer 1AssetLiabilityPermanent2Answer 2AssetLiabilityPermanent3Answer 3AssetLiabilityPermanent4Answer 4AssetLiabilityPermanent5Answer 5AssetLiabilityPermanent6Answer 6AssetLiabilityPermanent7Answer 7AssetLiabilityPermanent8Answer 8AssetLiabilityPermanent9Answer 9AssetLiabilityPermanent10Answer 10AssetLiabilityPermanent

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