For the following scenario, determine whether the related book-tax difference (if any) is favorable or unfavorable.

Hilton Corporations is considering adding a new hotel location in Santa Fe, NM. It sends two employees to survey the area during the year. The company pays $1,000 for flights, no cost for lodging (uses one of its alternative local hotel locations to house them), and $400 for meals. The employees spent the entire trip doing work for the project (no personal use time).

I. Favorable

II. Unfavorable

III. Not applicable as there is no book-tax difference