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Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maple's ending book nventory for each year

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Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maple's ending book nventory for each year and the additional $263A costs it was required to include in its ending inventory. Maple immediately expensed hese costs for book purposes. In year 2, Maple sold all of its year 1 ending inventory, and in year 3 it sold all of its year 2 ending nventory Ending book inventory Additional $263A costs Ending tax inventory Year 1 $2,640,000 46,000 $2,686,000 Year 2 $3,017,500 73,500 $3,091,000 Year 3 $2,285,500 63,750 $2,349, 250 Required: a. What book-tax difference associated with its inventory did Maple report in year 1? Was the difference favorable or unfavorable? Was it permanent or temporary? b. What book-tax difference associated with its inventory did Maple report in year 2? Was the difference favorable or unfavorable? Was it permanent or temporary? c. What book-tax difference associated with its inventory did Maple report in year 3? Was the difference favorable or unfavorable? Was it permanent or temporary

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