#3 Answer: (4). A corporation records a $7,000 unrealized gain due to an increase in the value of its short-term investments (FV-NI) at December 31, 2020. Unrealized gains on investments are not taxable for tax purposes until the investment is actually sold. At December 31, 2020, Is this a temporary difference or a permanent difference? Is this gain an example of a deferred tax asset or a deferred tax liability? Type of Difference Deferred Tax A. Temporary Asset B. Permanent Liability C. Temporary Liability D. Permanent Asset #4