Mann Inc., a calendar year taxpayer, incurred $39,640 start-up expenditures during the preoperating phase of a new business venture. The business started operations in November. Mann expensed the $39,640 on its current-year financial statements. Which of the following statements is true?

Group of answer choices

The start-up expenditures resulted in a $34,255 unfavorable book/tax difference.

The start-up expenditures resulted in a $39,640 unfavorable book/tax difference.

The start-up expenditures resulted in a $34,640 unfavorable book/tax difference.

The start-up expenditures resulted in a $34,640 favorable book/tax difference.