For each of the situations below, indicate whether it results in a reversing (timing) difference or a permanent difference in the year. The following are independent situations for Bramwell Corp. Difference 1. 2. Situations Estimated warranty costs (covering a three-year warranty) are expensed for financial reporting purposes at the time of sale but deducted for income tax purposes when they are paid. FV-NI equity investments have a quoted market value that is recorded at fair value through net income and is adjusted to their fair value at the SFP date. The depreciation on equipment is different for book and income tax purposes because of different bases of carrying the asset, which was acquired in a trade- in. The different bases are a result of different rules that are used for book and tax purposes to calculate the cost of assets acquired in a trade-in. 3. 4.