Assume Maple Corp has just completed the third year of its existence (year 3) The table below indicates Maples ending book inventory for each year and the additional I R C 263A costs it was required to include in its ending inventory Maple immediately expensed these 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 inventory Year 1 Year 2 Year 3 Ending book inventory $ 3,040,000 $ 3,432,500 $ 2,742,500 Additional I R C 263A costs 52,000 74,750 51,500 Ending tax inventory $ 3,092,000 $ 3,507,250 $ 2,794,000 Required What booktax difference associated with its inventory did Maple report in year 1 Was the difference favorable or unfavorable Was it permanent or temporary What booktax difference associated with its inventory did Maple report in year 2 Was the difference favorable or unfavorable Was it permanent or temporary What booktax 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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Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maples ending book inventory for each year

Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maples ending book inventory for each year and the additional I.R.C. 263A costs it was required to include in its ending inventory. Maple immediately expensed these 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 inventory.

	Year 1		Year 2		Year 3
Ending book inventory	$	3,040,000	$	3,432,500	$	2,742,500
Additional I.R.C. 263A costs		52,000		74,750		51,500
Ending tax inventory	$	3,092,000	$	3,507,250	$	2,794,000

Required:

What booktax difference associated with its inventory did Maple report in year 1? Was the difference favorable or unfavorable? Was it permanent or temporary?
What booktax difference associated with its inventory did Maple report in year 2? Was the difference favorable or unfavorable? Was it permanent or temporary?
What booktax difference associated with its inventory did Maple report in year 3? Was the difference favorable or unfavorable? Was it permanent or temporary?