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Identifying Tax Differences

Listed below are ten separate situations. For each item indicates whether the differences is $(1)$ temporary creating a deferred tax asset or a deferred tax liability or $(2)$ permanent.

$\backslash$table$[[,,\backslash$table$[[$Deferred$],[$Account$]],,],[,$Item,Asset,Liability,Permanent$],[1.,$Pension fund contributions are less than pension expense for the current year, resulting in a pension liability on the company's balance sheet.,,,$],[2.,$Dividend revenue recognized for accounting while a portion is deductible for taxes $($dividends received deduction$).,,,],[3.,$Estimated warranty costs: accrual basis for accounting and cash basis for income tax.,,,$],[4.,$Fines expensed for accounting but not deductible for tax purposes.,,,$],[5.,$Straight$-$line depreciation for accounting and accelerated depreciation for income tax.,,$>,],[6.,$Unrealized gain on investments: FV$-$NI recognized for accounting, but gain recognized only on disposal of the asset for income tax.,,,$],[7.,$Rent revenue collected in advance: accrual basis for accounting, cash basis for income tax.,,,$],[8.,$Unrealized loss on investments: FV$-$NI recognized for accounting, but loss recognized only on disposal of the asset for income tax.,,,$],[9.,$Probable and estimable litigation contingency: accrual basis for accounting and cash basis for income tax.,,,$],[10.,$Interest received on investments in municipal bonds is not taxable.,,,$]]$

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