Final answer:
The gain on involuntary conversion of a non-monetary asset does not result in a temporary difference because it is usually recognized for both financial reporting and tax purposes in the same period.
Step-by-step explanation:
The question pertains to temporary differences in accounting, which are differences between accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods. In this scenario
- Product warranty liabilities will result in a temporary difference because the expense is recognized in the financial statements when the warranty is issued but deducted for tax purposes when the warranty work is performed.
- Advance rental receipts also lead to a temporary difference as the income is recognized for tax purposes when received but recognized in financial statements over the period the rental space is used.
Therefore, the correct answer is 'c. Gain on involuntary conversion of non-monetary asset' as it does not result in a temporary difference.