P18-2 Temporary and Permanent Differences In the current year, you are calculating a diversified companys deferred taxes. Based on an analysis of the companys current taxable income and pretax financial income, you have iden-tified the following items that create differences between the two amounts and that may result in differences between the companys future taxable income and its future pretax financial income: LO 18.3 LO 18.4 ________ ________ ________ ________ ________ ________ ________ ________ ________ 1. Percentage depletion deducted for taxes in excess of cost depletion for financial reporting 2. Warranty costs to be deducted for taxes that were deducted as warranty expense for financial reporting 3. Gross profit to be recognized for taxes under