Problem 3 Income Taxes - Temporary and Permanent Differences (10 points) Indicate whether the items below (each situation is independent) are classified as one of the three categories below: 1. DTA - Deferred tax asset - Temporary difference that will result in future deductible amounts 2. DTL - Deferred tax liability - Temporary difference that will result in future taxable amounts 3. P-Permanent difference \begin{tabular}{|l|l|c|} \hline & Description & DTA,DTL,orP \\ \hline A & Rents are collected in advance, and are taxable when received & \\ \hline B & MACRSaccelerateddepreciationisusedfortaxpurposeandstraightlinedepreciationisusedforfinancialreporting & \\ \hline C & Proceedsarereceivedfromalifeinsurancepolicyduetothedeathofakeyofficer & \\ \hline D & Estimatedlossesrelatedtopendinglawsuitsareaccruedonthebooks.Fortaxpurposestheselossesaredeductiblewhentheclaimsareactuallysettled. & \\ \hline E & Interest is received on a tax exempt municipal bond. & \\ \hline \end{tabular}