Listed below are ten independent situations. For each situation indicate (by letter) whether it will create a deferred tax asset (A), a deferred tax liability (L), or neither (N). Situation 1. Advance payments on insurance, deductible when paid. 2. Estimated warranty costs; tax deductible when paid. 3. Rent revenue collected in advance; cash basis for tax purposes. 4. Interest received from investments in municipal governmental bonds. 5. Prepaid expenses, tax deductible when paid. 6. Net operating loss carryforward. 7. Net operating loss carryback. 8. Straight-line depreciation for financial reporting; MACRS for tax purposes. 9. Organization costs expensed when incurred; tax deductible over 15 years. 10. Life insurance proceeds received upon the death of the company president.

1. Advance payments on insurance, deductible when paid.

Indication: Deferred tax liability (L)

2. Estimated warranty costs; tax deductible when paid.

Indication: Deferred tax asset (A)

3. Rent revenue collected in advance; cash basis for tax purposes.

Indication: Deferred tax asset (A)

4. Interest received from investments in municipal governmental bonds.

Indication: Neither (N)

5. Prepaid expenses, tax deductible when paid.

Indication: Deferred tax liability (L)

6. Net operating loss carryforward.

Indication: Deferred tax asset (A)

7. Net operating loss carryback.

Indication: Neither (N)

8. Straight-line depreciation for financial reporting; MACRS for tax purposes.

Indication: Deferred tax liability (L)

9. Organization costs expensed when incurred; tax deductible over 15 years.

Indication: Deferred tax asset (A)

10. Life insurance proceeds received upon the death of the company president.

Indication: Neither (N)

ell really, the setting was in franklin and lincoln visits franklin even after he moved to columbus, and he went to school

2b2t

explanation:

2b2t