JDog corporation owns stock in Oscar, Inc. JDog received a $10,000 dividend from Oscar, Inc. What temporary book-tax difference associated with the dividend will JDog report for the year in the following alternative scenarios (for part a., ignore the dividends received deduction)?
a. JDog owns 5 percent of the Oscar, Inc. stock. Oscar's net income after tax for the year was $500,000.
b. JDog owns 40 percent of the Oscar, Inc. stock. Oscar's net income after tax for the year was $500,000.