1. Indicate which of the following items are temporary differences and which are non-taxable or nondeductible. For each temporary difference, indicate whether the item considered alone would create a deferred tax asset or liability.

a. Tax depreciation in excess of book (financial accounting) depreciation

b. Premium payment for life insurance policy on president, $95,000

c. Rent collected in advance of period earned, $75,000

d. Warranty provision accrued in advance of period paid, $40,000 e. Interest revenue received on municipal bonds, $30,000

Please explain why