Listed below are five independent situations. For each situation indicate (by letter) whether it will create (A) a deferred tax asset, (L) a deferred tax liability, or (N) neither.

___ 1) Research and development costs reported in the income statement but elected to be capitalized and amortized over five years for tax purposes.

___ 2) An operating loss carryforward.

___ 3) Organization costs reported in the income statement but amortized and deducted over five years for tax purposes.

___ 4) Premiums paid on life insurance policies covering key corporate executives.

___ 5) The nondeductible portion of travel and entertainment expenses.