The following are independent situations which occurred in CTC

a) The company settles its retirement obligation on a freezing platform that is put out of service. The actual settlement was less than the amount accrued, and the company recognizes a gain on settlement in its accounting net income.

b) Estimated warranty costs (covering a three-year warranty) are expensed for financial reporting purposes at the time of sale but deducted for income tax purposes when they are paid.

c) Equity investments have a quoted market value that is recorded at fair value through net income and is adjusted to their fair value at the balance sheet date.

d) The depreciation on equipment is different for book and income tax purposes because of different bases of carrying the asset, which was acquired in a trade-in. The different bases are a result of different rules that are used for book and tax purposes to calculate the cost of assets acquired in a trade-in.

Required: For each of the situations above:

1) Indicate whether it results in a reversing (timing) difference or a permanent difference in the year. Be sure to note any differences between ASPE and IFRS.