Select from the option list provided the appropriate difference between financial statement income and taxable income for each circumstance below. Each choice may be used once, more than once, or not at all.

Circumstance	Difference
1. For plant assets, the depreciation expense deducted for tax purposes is in excess of the depreciation expense used for financial reporting purposes.	A temporary difference resulting in a deferred tax liability
2. A landlord collects some rents in advance. Rents received are taxable in the period in which they are received.
3. Interest is received on an investment in tax-exempt municipal obligations.
4. Costs of guarantees and warranties are estimated and accrued for financial reporting purposes.
5. The music group Rock Stars has sold tickets to its concerts in 35 cities that will occur next fiscal year.
6. The utility bill monthly invoice date is the 15the of each month.
7. The corporation wins a lawsuit and receives a check for $1,000,000 to compensate it for damages.

Options:

1.A temporary difference resulting in a deferred tax liability

2. A temporary difference resulting in a deferred tax asset

3. A permanent difference

4. no difference