Taxes 1. What are permanent tax differences? 2. Create a numerical example of a permanent tax difference and how it is treated on the Company's books and the tax (IRS) books? Be specific showing differences or similarities between book taxable income and tax expense vs. tax schedule table income and tax due. 3. What are temporary tax differences. Create a numerical example of a temporary tax difference Be specific showing differences or similarities between book taxable income and tax expense vs. tax schedule table income and tax due. 4. When is a deferred tax asset created? 5. When is a differed tax liability created