Scroll down to complete all parts of this task. For each of the hypothetical circumstances listed below, determine whether the difference between book and tax records represents a temporary timing difference resulting in either a deferred tax asset or a liability or represents a permanent timing difference. Also determine how each difference would be classified on the financial statements (current or non-current). Click on each cell and select from the list provided. For plant assets, the depreciation expense deducted for tax purposes is in excess of the 1 depreciation expense used for financial reporting purposes. A landlord collects some rents in advance. Rents 2 received are taxable in the period in which they are received 3 Interest is received on an investment in tax- exempt municipal obligations. Costs of one-year warranties are estimated and accrued for financial reporting purposes 4 MS 2 received are taxable in the period in which they are received Se ect an option bow Interest is received on an investment in tax- 3 exempt municipal obligations. Costs of one-year warranties are estimated and accrued for financial reporting purposes. A company elects to prepay its liability insurance 5 for a one-year period that overlaps its balance sheet date. Temporary timing difference, asset current Temporary timing difference, asset, non-current Temporary timing difference, liability, current Temporary timing difference, liability, non-current Permanent difference, no financial statement presentation Permanent difference, asset non-current Permanent difference, liability, non-current RESET CANCEL ACCEPT A parent corporation accounts for an investment in a subsidiary using the equity method of 6 accounting. Undistributed earnings will be paid over multiple years beginning more than one- year from the balance sheet date. 7 Start-up company incurs significant organizational costs in its first year of operation Charisma Corporation pays premiums on key man life insurance for its charismatic CEO. 3 MacBook Air