McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 9

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 (income difference only-gnore the dividends received deduction)?
a.JDog owns 5 percent of the Oscar, Inc.stock.Oscar's income for the year was $500,000.b.JDog owns 40 percent of the Oscar, Inc.stock.Oscar's income for the year was $500,000.