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Business, 16.04.2021 01:50 rustalex6045

Coop Inc. owns 39% of Chicken Inc., both Coop and Chicken are corporations. Chicken pays Coop a dividend of $11,000 in the current year. Chicken also reports financial accounting earnings of $21,000 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 the dividend distribution (ignoring the dividends received deduction)

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Coop Inc. owns 39% of Chicken Inc., both Coop and Chicken are corporations. Chicken pays Coop a divi...
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