PROBLEM TWO: Determining DTA, DTL, or Neither Determine whether the described transaction creates a DTA Deferred Tax Asset [DTA]; DTL - Deferred Tax Liability [DTL]; or a PD - Permanent Difference [PD] 1. Accrual of revenue [Account Receivable] from a painting job completed this year. 2. Newspaper subscriptions: taxable when received; recognized for financial reporting when earned. \begin{tabular}{lll} & 3. & Prepaid rent \\ \hline & 4. & Accrued bond interest expense. \\ \hline \end{tabular} 5. Interest earned and received this year from - City XYZ's municipal bonds. 6. Unrealized loss this year from recording investments at fair value. 7. Warranty expense; estimated for financial reporting when products are sold. 8. Advance rent receipts on an operating lease (as the lessor) 9. Straight-line depreciation for financial reporting; accelerated depreciation for tax purposes. 10. Accrued pension expense (unfunded) from calculation of employee future retirement benefits