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

20182019

Revenues $980$1,015

Expenses 778818

Pretax accounting income (income statement)$202$197

Taxable income (tax return)$195$225

Tax rate: 40%

1. Expenses each year include $40 million from a two-year casualty insurance policy purchased in 2018 for $80 million. The cost is tax deductible in 2018.
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 $38 million and $40 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $25 million ($10 million collected in 2017 but not recognized as revenue until 2018) and $33 million, respectively. Hint: View this as two temporary differencesone 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 $5 million 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 $6 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______________

Loss contingency___________________