Assume Maple Corporation has just completed the third year of its existence year The table below indicates Maples ending book inventory for each year and the additional A costs it was required to include in its ending inventory. Maple immediately expensed these costs for book purposes. In year Maple sold all of its year ending inventory, and in year it sold all of its year ending inventory.
Year Year Year
Ending book inventory $ $ $
Additional A costs
Ending tax inventory $ $ $
Required:
What booktax difference associated with its inventory did Maple report in year Was the difference favorable or unfavorable? Was it permanent or temporary?
What booktax difference associated with its inventory did Maple report in year Was the difference favorable or unfavorable? Was it permanent or temporary?
What booktax difference associated with its inventory did Maple report in year Was the difference favorable or unfavorable? Was it permanent or temporary?
