Problem $5-37($LO $5-2)($Algo$)$

Assume Maple Corporation has just completed the third year of its existence $($year $3).$ The table mating book

inventory for each year and the additional $$2634$ 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.

Required:

a$.$ 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?

b$.$ What book$-$tax difference associated wuth its inventory did Maple report in year $2?$ Was the difference faverable on unfavorable?

Was it permanent or temporary?

c$.$ What book$-$tax difference associated with its inventory did Maple report in year $3?$ Was the difference favoriable or unfavorable?

Was it permanent or temporary?