2. Show the lower portion of the 2013 income statement that reports the income tax benefit of the operating loss. Listed below are ten independent situations. For each situation indicate (by letter) whether it will create a deferred tax asset (A), a deferred tax liability (L), or neither (N). Situation _____ 1. Advance payments on insurance deductible when paid. _____ 2. Estimated warranty costs, tax deductible when paid. _____ 3. Rent revenue collected in advance; cash basis for tax purposes. _____ 4. Interest received from investments in municipal bonds. _____ 5. Prepaid expenses tax deductible when paid. _____ 6. Operating loss carryforward. _____ 7. Operating loss carryback. _____ 8. Straight-line depreciation for financial reporting; MACRS for tax purposes. _____ 9. Organization costs expensed when incurred, tax deductible over 15 years. _____10. Life insurance proceeds received upon the death of the company president.