For Each of the Items Below,determine Whether the Items Are

question 19

Essay

For each of the items below,determine whether the items are temporary differences or permanent differences.
For each temporary difference,determine whether a deferred tax asset or deferred tax liability is created by the temporary difference described.Assume that each of the temporary differences described is an originating difference.
1.Accrued bad debt expense
2.The dividends received deduction
3.Installment sales revenue
4.Insurance payments for executives for which the company is the beneficiary
5.Fines paid for law violations
6.Municipal bond interest
7.Accrued warranty expense
8.Revenues received in advance
9.Expenses paid for in advance (prepaid insurance)
10.Tax depreciation expense exceeds GAAP (book)depreciation expense

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Definitions:

Latchkey Kids

Children who return home after school and are alone until a parent or another adult arrives.

Single-Parent Kids

Children who are raised by only one parent due to various circumstances such as divorce, death, or single adoption.

Verbal Punishment

The use of words to reprimand or discipline someone, often as an alternative to physical punishment.

Socioeconomic Classes

Categories of individuals based on their economic, social status, and job roles, influencing their opportunities and lifestyle.