tion.com Homework Saved Exercise 16-7 Identify future taxable amounts and future deductible amounts [LO Listed below are 10 causes of temporary differences. For each temporary difference indicate the balance situation creates a temporary difference. Temporary Difference 1. Accrual of loss contingency, tax-deductible when paid. 2. Newspaper subscriptions: taxable when received, recognized for finaneial reporting when the perfornance obligation is satinfied. 3. Prepaid rent, tax-deductible when paid 4. Aecrued bond interest expense, tax-deductible when paid. 5. Prepaid insurance, tax-deduetible when paid 6. Unrealized loss from recording investments at fair value (tax-deductible when 7. Warzanty expense; estimated for finaneial reporting when produets are sold 8. Advance rent receipts on an operating lease (as the lessor), eaxable vhen received. investments are sold) deducted for tax purposes when paid. Straight-line depreciation for financial reportings accelerated depreeiation for tax purposes. 10. Acerued expense for enployee postretirement benefita, tax-deduct.ible when subsequent payments are made. Balance Sheet Account Accrued bond interest payable Accumulated depreciation; and thus depreciable assets Liability deferred rent revenue C Prev 7 of 16 Next >