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All differences between the amount of income tax payable and the amount of income tax expense can be classified as either permanent differences or temporary differences. A num- ber of items that may give rise to differences are as follows: A. Season tickets are sold in advance by the Jacksonville Jaguars football team. B. Available-for-sale securities decreased in value during the year. C. A company accrues interest on a note receivable in the period before the borrower pays. D. Subsequent expenditures related to depreciable assets are expensed for tax purposes and capitalized for accounting purposes. E. A company applies the matching concept in accounting for expected warranty costs. F A company acquires a business and recognizes goodwill. Tax laws require goodwill to b amortized over 15 years.. G. Patents are amortized over a longer period for GAAP than for tax purposes. H. The direct write-off method is used to account for bad debts for GAAP purposes. I. Customers pay amounts due in the period after the sale is recognized. J. A company complies with the LIFO conformity rule. K. A company receives proceeds from a life insurance policy on which it is the beneficiary. L. A company is assessed a late fee for submitting its payroll taxes after the due date. M. A company pays commissions related to the purchase of municipal bonds. Required: For each of the items listed, indicate whether the type of difference is permanent (P), temporary (T), or neither (X), and whether the item will create a deferred tax asset (DTA), a deferred tax liability (DTL), or neither (X)

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