39.

Coop Inc. owns 42% of Chicken Inc., both Coop and Chicken are corporations. Chicken pays Coop a dividend of $29,000 in the current year. Chicken also reports financial accounting earnings of $39000 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)? Multiple Choice $29,000 unfavorable. $12.620 unfavorable. None of the choices are correct $12.620 favorable $29000 fevorable