Juicy Company reports pretax financial income of $100,000 for 2017. The following items cause taxable income to be different than pretax financial income: Depreciation on the tax return is greater than depreciation on the income statement Fines for pollution appear as an expense of on the income statement. Expenses are incurred in obtaining tax exempt income Rent collected on the tax return is greater than rent collected on the income statement For some asset depreciation expense, asset lives are shorter for tax purposes. Identify the differences caused by the above items. Permanent Difference Future Deductible Amount = Deferred Tax Asset Future Taxable Amount = Deferred Tax Liability 4 Depreciation on the tax return is greater than depreciation on the income statement Rent collected on the tax return is greater than rent earned on the income statement Fines for pollution appear as an expense of on the income statement Expenses are incurred in obtaining tax exempt income For some asset depreciation expense, asset lives are shorter for tax purposes. a. Permanent Difference b. Future Taxable Amount = Deferred Tax Liability C. Permanent Difference d. Future Taxable Amount = Deferred Tax Liability e. Future Deductible Amount = Deferred Tax Asset