Corporation Penny owns 40% of the stock in Corporation Wise, a US corporation. Penny uses the equity method to account for its ownership in Wise. During the current year, Wise has $100,000 of book income. Corporation Penny receives a $60,000 distribution from Wise during the year. Wise has sufficient earnings & profits from which to pay its distribution. Penny's share of book earnings increases its book basis, and the dividend decreases it under the equity method. 2a: Will Penny's investment in Wise lead to a book-tax difference in terms of the amount of income reported on the GAAP financial statements and the net amount of taxable income reported on the tax return? Yes - $60,000 difference Yes - $40,000 difference Yes - $100,000 difference Yes - $19,000 difference No - $0 difference