Listed below are situations that affect taxable income and pre-tax accounting income. For each situation, indicate with a Pif the item is a permanent difference or indicate with a Tif the item is a timing difference. Use the letters Por to indicate your answers as the grading key is looking for an exact match. Interest on City of Muncie Sewer bonds held as an investment. Estimated future warranty costs. Sales reported under the accrual method for financial reporting and the installment method for tax purposes. Patent royalties received in advance Contributions made in excess of tax limitation allowed to be carried forward to apply against future taxable income. Fines pald to the Environmental Protection Agency for pollution violations, Earnings on investments reported for financial purposes under the equity method (the earnings are expected to be eventually received as dividends) Penalty for making late payment of employer payroll taxes, Estimated loss on contract litigation The 80% exclusion for dividends received from U.S. corporations