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What is the amount and nature of the book-tax difference

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Question - Coop Incorporated owns 10 percent of Chicken Incorporated. Coop's Chicken stock appreciated by $15,000 during the year. Both Coop and Chicken are corporations. Chicken pays Coop a dividend of $10,000 in the current year. Chicken also reports financial accounting earnings of $20,000 for that year. Assume Coop follows the general rule of accounting for investment in Chicken. What is the amount and nature of the book-tax difference to Coop associated with its investment in Chicken stock (ignoring the dividends received deduction)?

Reference no: EM133130689

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