(Solved): E 16-8 Unrealized gain reported in net income from reporting investments at fair value: taxable whe ...

E 16-8 Unrealized gain reported in net income from reporting investments at fair value: taxable when investments are sold [016-2, (1) LO16-3 Listed below are 10 causes of temporary differences. For each temporary difference, indicate (by letter) whether it will create future deductible amounts (D) or future taxable amounts ( $T$ ). Temporary Difference 1. Accrual of loss contingency; tax deductible when paid. 2. Newspaper subscriptions; taxable when cash is recelved, recognized for financial reporting when the performance obligation is satisfied. 3. Prepald rent, tax deductible when paid. 4. Accrued bond interest expense, tax deductible when paid. 5. Prepald insurance, tax deductible when paid 6. Unrealized loss reported in net income from recording investments at fair value; tax deductible when investments are sold. 7. Warranty expense; estimated for financial reporting when products are sold; deducted for tax purposes when paid. 8. Advance rent recelpts on an operating lease as the lessor; taxable when recelved: 9. Straight-line depreciation for financial reporting: accelerated depreciation for tax purposes: 10. Accrued expense for employee vacation days not yet taken; tax deductible when employee takes vacation in future.