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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 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 $ 3,180,000 $ 3,725,000 $ 3,014,000 Additional 263A costs 34,000 85,750 41,500 Ending tax inventory $ 3,214,000 $ 3,810,750 $ 3,055,500 Required: 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? 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? 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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