Juicy Company reports pretax financial income of $100,000 for 2017. The following items cause taxable income to be different than pretax financial income:

1. Depreciation on the tax return is greater than depreciation on the income statement by $20,000.

2. Rent collected on the tax return is greater than rent earned on the income statement by $40,000.

3. Fines for pollution appear as an expense of $10,000 on the income statement.

Identify the differences caused by the above items.

a. Permanent Difference

b. Future Deductible Amount = Deferred Tax Asset

c. Future Taxable Amount = Deferred Tax Liability

- A. B. C.	Depreciation on the tax return is greater than depreciation on the income statement by $20,000.
- A. B. C.	Rent collected on the tax return is greater than rent earned on the income statement by $40,000.
- A. B. C.	Fines for pollution appear as an expense of $10,000 on the income statement.