Assume Maple Corp. has just 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 1Year 2Year 3Ending book inventory$3,040,000 $3,485,000 $2,789,000 Additional §263A costs 59,000 87,750 60,500 Ending tax inventory$3,099,000 $3,572,750 $2,849,500 Complete this question by entering your answers in the tabs below. Req AReq BReq CWhat book-tax difference associated with its inventory did Maple report in year 1? Was the difference favorable or unfavorable? Was it permanent or temporary? Book-tax difference Was the difference favorable or unfavorable? Was it permanent or temporary?

Name: Assume Maple Corp. has just completed the third year of its existence
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Assume Maple Corp. has just 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

Here the difference will be temporary difference only

Answered: Assume Maple Corp. has just completed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Assume Maple Corp. has just 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	$	3,040,000		$	3,485,000	$	2,789,000
Additional §263A costs		59,000			87,750		60,500
Ending tax inventory	$	3,099,000		$	3,572,750	$	2,849,500

Complete this question by entering your answers in the tabs below.

Req A
Req B
Req C

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?


Book-tax difference
Was the difference favorable or unfavorable?
Was it permanent or temporary?

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