Question # 2 Reversing versus Permanent Difference: Item Add or Subtract Golf club dues, $20,000 Depreciation expense, $60,000 Development costs incurred during year; capitalized for accounting purposes, $100,000 Warranty costs accrued during year, $30,000 Interest and penalty for late payment payroll taxes, $25,000 CCA, $180,000 Amortization of capitalized development costs, $10,000 Costs incurred during year for warranty work completed, $22,000 Required: 1. For each item, indicate if it will be added or subtracted from net income before income taxes. 2. For each item, indicate if it is a permanent difference or a reversing difference. a