Review of Ace's financial reports and information revealed the following: Sa

Review of Ace's financial reports and information revealed the following: Sales 2.4 million Opening inventory 650,000 Purchase 1.1million Closing inventory 585,000 Heat, light utilities 300,000 Employee payroll 245,000 Executive salary and pension 350,000 EPA fines 85,000 Life insurance premiums paid 47,000 Β  Life insurance collected on death of vice-president 500,000 Β  Depreciation expense: GAAP Double declining balance total for year 85,000 MACRS, including section 179 and special first year, 692,000 Income tax paid Federal Regular 62,000, AMT 16,000, New York State/City 27,000 Β  Β  Compute income reported for GAAP purposes and taxable income, if different. Categorize as favorable/unfavorable a differences.Β Are they timing or permanent differences?