3. Which of the following would not result in a permanent difference between pretax financial income! and taxable income? a. product warranty costs b. premiums paid for life insurance policies on officers of the company c. interest revenue received from investments in municipal bonds d. percentage depletion in excess of cost depletion on wasting assets 4. Which of the following would not result in a permanent difference between pretax financial income! and taxable income? a. product warranty costs b. premiums paid for life insurance policies on officers of the company C. interest revenue received from investments in municipal bonds d. percentage depletion in excess of cost depletion on wasting assets 5. Interperiod income tax allocation is based on the assumption that a. permanent differences ultimately reverse and require Interperiod tax allocation b. permanent differences do not have deferred tax consequences c. total income tax expense should be apportioned among numerous line items on the income statement d. the amount of income tax expense reported on the income statement should be the same as the income tax obligation on the corporation's income tax return 6. Which of the following statements regarding the allocation of income taxes is not true? a. With comprehensive tax allocation, income taxes on all transactions and events are viewed as affecting cash flows in both the period of origination and the period of reversal. b. The deferred method is income-statement-oriented. c. The asset/liability method is balance-sheet-oriented. d. Partial tax allocation includes income tax expenses only for those timing differences expected to reverse in the future. 7. Which one of the following requires Interperiod tax allocation? a. premium paid on key executives' life insurance b. warranty expenses related to a three-year warranty period interest received on municipal obligations d. percentage depletion in excess of cost depletion 3. Which of the following would not result in a permanent difference between pretax financial income! and taxable income? a. product warranty costs b. premiums paid for life insurance policies on officers of the company c. interest revenue received from investments in municipal bonds d. percentage depletion in excess of cost depletion on wasting assets 4. Which of the following would not result in a permanent difference between pretax financial income! and taxable income? a. product warranty costs b. premiums paid for life insurance policies on officers of the company C. interest revenue received from investments in municipal bonds d. percentage depletion in excess of cost depletion on wasting assets 5. Interperiod income tax allocation is based on the assumption that a. permanent differences ultimately reverse and require Interperiod tax allocation b. permanent differences do not have deferred tax consequences c. total income tax expense should be apportioned among numerous line items on the income statement d. the amount of income tax expense reported on the income statement should be the same as the income tax obligation on the corporation's income tax return 6. Which of the following statements regarding the allocation of income taxes is not true? a. With comprehensive tax allocation, income taxes on all transactions and events are viewed as affecting cash flows in both the period of origination and the period of reversal. b. The deferred method is income-statement-oriented. c. The asset/liability method is balance-sheet-oriented. d. Partial tax allocation includes income tax expenses only for those timing differences expected to reverse in the future. 7. Which one of the following requires Interperiod tax allocation? a. premium paid on key executives' life insurance b. warranty expenses related to a three-year warranty period interest received on municipal obligations d. percentage depletion in excess of cost depletion