Bob has just completed its first year of operations and has a number of difference between its pretax financial income and taxable income. The differences at the end of 2013 are as follows:

A) Bob recorded $7,000 of interest revenue on municipal bonds during 2013.

B) $15,000 of installment sales were recognized in income during 2013. They are expected to be received during January 2015.

C) Depreciation on machinery totaled $28,000 using straight-line depreciation for financial statements. Bob's tax accountant record $36,000 of depreciation on the company's tax return.

D) Bill was fined $3,000 for violating certain labor laws during 2013. Bill paid the fine during 2013 and agreed to ensure future violations would not occur.

E) Drew company agreed to rent space from BOB in 2014. In December 2013, Bob received $7,500 from Drew in advance for rent.

F) For 2013, Bob reported $9,500 of warranty expense on its income statement. The company's warranty liabilitiy at the end of 2013 was $6,250. Bill expects additional warranty costs to be paid in 2014.

Required:

a. For each item, determine if it results in a temporary or permanent difference. I fthe item results in a temporary difference, determine if it results in a deffered tax asset or deferred tax liability.

b. For each item, determine if it initally results in pretax finanical income being greater than or less than taxable income.