1. The diminishing balance depreciation method is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes. 2. A landlord collects some rents in advance. Rents received are taxable in the period when they are received. 3. Expenses are incurred in obtaining tax-exempt income. 4. Costs of guarantees and warranties are estimated and accrued for financial reporting purposes. Do the following generate: Future Deductible Amount = Deferred Tax Asset Future Taxable Amount = Deferred Tax Liability Permanent Difference