Arndt, Inc, report the following for 2018 and 2019 ($ in millions):

2018 2019

Revenues $ 996 $1,031

Expenses 784 824

Pretax accounting income (income statement) $ 212 $ 207

Taxable income (tax return) $ 210 $ 230

Tax rate: 40%

1. Expenses each year include $30 million from a two-year casualty insurances policy purchased in 2018 for $60 million. The cost is tax deductible in 20818.
2. Expenses include $3 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $36 million and $48 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $28 million ($10 million collected in 2017 but not recognized as revenue until 2018) and $36 million, respectively. Hint: View this as two temporary differences-one reversing in 2018: one originating in 2018.
4. 2018 expenses included a $22 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $5million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $7 million and no deferred tax liability.

1 Which o the five-difference described are temporary and which are permanent differences?

Life insurance premiums temporary or permanent

Casualty insurance expense temporary or permanent

Unrealized loss temporary or permanent

Subscriptions received temporary or permanent

Loss contingency temporary or permanent