9. Which one of the following is a permanent difference between GAAP and taxable income? Interest received on municipal bonds Installment sales Bad debts expense Warranty expense 10. During its first year of operations a company recorded expenses totaling $375,000 for book (GAAP) purposes. For tax purposes, $175,000 of the expenses are deductible during the first year of operations and $200,000 are deductible during the second year of operations. The income tax rate was 40% for both the first and second year. The balance sheet at the end of the first year of operations will report a deferred tax (Show your work) doo asset of $80,000. liability of $80,000. liability of $90,000. asset of $90,000