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Please help, im not sure if these are correct? Indicate whether each situation below results in a temporary or permanen difference for the purpose of
Please help, im not sure if these are correct?
Indicate whether each situation below results in a temporary or permanen difference for the purpose of accounting for income taxes by selecting the appropriate circle. Situation Temporary difference Permanent difference O o 1. An assurance-type warranty liability is recognized as an expense in financial income when a product is sold and recognized in taxable income when the expenditures are made in a future period. 2. A receivable from a nondealer installment sale recognized at the time of sale in financial income and at the time of collection in taxable income. 3. An asset depreciates more quickly for tax purposes than for financial reporting purposes. 4. Percentage depletion of certain natural resources. 5. The insurance premiums paid by a beneficiary entity on policies covering its corporate officers. 6. Subscriptions revenue received in advance that is recognized in taxable income when received and in financial income when earned in a later period. O 0 . O Step by Step Solution
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