Listed below are five independent situations. For each situation indicate whether it will create a deferred tax asset, a deferred tax liability, or neither. PHRASE TERM neither 1. An operating loss carryback. 2. Warranty expense, tax deductible when paid. 3. Interest earned on investments in state and local government bonds. 4. Fines and penalties due to violations of law. 5. Prepaid expenses, tax deductible when paid. a deferred tax asset a deferred tax liability