Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): Revenues W T Expenses Pretax accounting income (income statement) Taxable income tax return) Tax ratei 408 2018 2019 S 988 $1,025 782822 $ 206 $ 203 200 $ 230 BE a. Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million, The cost is tax deductible in 2018. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $35 million and $48 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $27 million ($9 million collected in 2017 but not recognized as revenue until 2018) and $35 million, respectively. Hint: View this as two temporary differences-one reversing in 2018; one originating in 2018. d. 2018 expenses included a $18 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019. e. During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible. f. At January 1, 2018, Arndt had a deferred tax asset of $7 million and no deferred tax liability Required: 1. Which of the five differences described are temporary and which are permanent differences? Difference Life Insurance premiums Casualty insurance expense Unrealized loss Subscriptions received