Question: Please see attached Assume Maple Corp. hasjust completed the third year of its existence (year 3). The table below indicates Maple's ending book inventory for

Please see attached

 Please see attached Assume Maple Corp. hasjust completed the third year

Assume Maple Corp. hasjust completed the third year of its existence (year 3). The table below indicates Maple's 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 $2,600,000 $2,920,000 $2,166,000 Additional 263A costs 43,000 88,750 40,750 Ending tax inventory $2,643,000 $3,008,750 $2,206,750 Required: 3. What booktax difference associated with its inventory did Maple report in year 1? Was the difference favorable or unfavorable? Was it permanent or temporary? b. What booktax difference associated with its inventory did Maple report in year 2? Was the difference favorable or unfavorable? Was it permanent or temporary? c. 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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