Use the information below to answer the question above.

Can someone help me with this question, please? I know the answer is C but im confused as to why. I know municipal interest is non-taxable so it is a 5000 permanent difference but why is the temporary difference 0? I thought it would be an 18000 temporary difference but based on the answer key I was wrong. Can someone explain it to me? please help and thank you in advance!

Boolean readToFirstElement, Configuration SchemaErrors schemaErrors) 8. Which of the following best describes the amount and classification of the difference between Jasper's cumulative taxable income and cumulative pretax financial income over the four-year period 2013 through 2016? System.Configuration Configuration SchemaErrors. Throwlf Errors Boolea Permanent Difference Temporary Difference -O- Configuration Base Conturation Record. Throwlf ParseErrors Con -0-ration SchemaErrors s $18,000 $5,000 -0- $5,000 cog 1 nation System.onConfigRemovedo $18,000d of inner exceptio $5,000 udo tem.On confiaRemover $18.000 Gender Interna In its 2013 financial accounting income, Jasper Inc. reports municipal bond interest income of $5,000 and warranty expense of $18,000. For tax purposes, the municipal bond interest is non- taxable and the warranty costs are deducted at the rate of $4,500 per year as the costs are incurred. Jasper has no other differences between PTFI and TI over the four year period. The table below summarizes tax and financial income for Jasper from 2013 to 2016: y Tax reporting 2013 at System Revenues over deductions Settings $25,000 secondar Warranty costs incurred (4,500) System.Con Taxable income Provider. GetPropertywa 20,500 20,500 2014 $17,000 (4,500) 12,500 2015 2016 $18,000 $19.000 (4,500) (4,500) 13,500 14,500 System.Config Financial reportingtiesFromProvider Set 2013 Set 2013 Revenues over expenses $25,000 property Na Municipal interest income 5.000 at System Warranty expense accrued (18.000) System.Cor Pretax financial income Property Value 12,000 2014 $17,000 -0- -0- 17,000 2015 2016 $18,000 $19,000 -0- -0- -0 -0- 18,000 19,000