Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.

1. Balance sheet classification	No tax consequences.	__
2. Temporary difference	"More likely than" not test.	___
3. Income tax expense	Same as related asset or liability.	__
4. Permanent difference	A "plug" for the net effect of the current tax liability and changes in deferred tax assets and liabilities.	___
5. Valuation allowance	Produces future taxable amounts or future deductible amounts.	___

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.

1. Capital leases	Accounting for these is based on substance over form.	___
2. Present value of minimum lease payments	The amount capitalized by the lessee.	___
3. Bargain purchase option	Capital lease expense.	___
4. Executory costs	Reduces the lessor's lease payment calculation.	___
5. Depreciable assets	Leasehold improvements.	___