For each of the following situations relating to the Sheldon Corporation, indicate whether the results would be deferred tax asset Adeferredtaxasset(L)Adeferredtaxliability(N)orneitherofthese. The Sheldon Corporation received $1,000,000 from an insurance policy it owned based upon the death of its president.The costs of forming the company were expensed when incurred and will be tax deductible of the next 10 years.

• The company acquired a new asset and will use straight-line depreciation for accounting purposes and MACRS for tax reporting.

• The company had an operating loss which it will carry-back to the two prior years for tax purposes

• The company had an operating loss which it will carry-forward for up to 20 years for tax purposes.

• Sheldon purchased and paid for a three-year insurance policy.

• The company received interest income on bonds issued by the State of New Jersey.

• Sheldon rents part of its office space and received two years of rent in advance.

• The firm offers a 5-year warranty on its product and records the estimated warranty expense when the sale is made in accordance with the matching principle.

• Incurred and paid salary expenses.