Explain the difference between pretax financial income and taxable income.

$2.$What are the two objectives of accounting for income taxes?

$3.$Interest on municipal bonds is referred to as a permanent difference when determining the proper amount to report for deferred taxes. Explain the meaning of permanent dif$-$ferences, and give two other examples.

$4.$Explain the meaning of a temporary difference as it relates to deferred tax computations, and give three examples.

$5.$Differentiate between an originating temporary difference and a reversing difference.

$6.$The book basis of depreciable assets for Erwin Co$.$ is $$900,000,$ and the tax basis is $$700,000$ at the end of $2015.$

The enacted tax rate is $34\%$ for all periods. Determine the amount of deferred taxes to be reported on the balance sheet at the end of $2015.$

$7.$Roth Inc. has a deferred tax liability of $$68,000$ at the beginning of $2015.$ At the end of $2015,$ it reports accounts receivable on the books at $$90,000$ and the tax basis at zero